“The increase was driven predominantly by cross-border bank credit,” it said — a category that includes loans and debt securities, but excludes derivatives and other claims. Indeed, cross-border bank credit rose by $730 billion in the quarter. The BIS said that was driven by lending to U.S.-based borrowers ($284 billion worth), followed by developed Europe ($225 billion) and other developed economies ($118 billion). The extension of bank credit to shadow bank borrowers in the U.S., “drove both total bank credit to the U.S, and global bank credit to [shadow banks],” it noted. Shadow banks accounted for more than half of the increase in credit to all U.S. borrowers.