BANKING & FINANCE - Aug. 14, 1991

Banking Activity Declines: International banking activity slowed in early 1991 as banks reined in operations due to new capital rules and worries about each other’s credit, according to a report to be published today. The Bank for International Settlements, which acts as central bank to the world’s central banks, said cross-border transactions fell by a record $54 billion in the first three months of the year. But cross-border interbank lending in Europe accelerated. The international bond market was “exceptionally buoyant,” the report said, because of the end of the Gulf War, confidence in various monetary policies and a rebound in stock markets. Total net international financing through lending and bonds came to $100 billion in the first quarter, down from $110 billion in the previous quarter and $135 billion in the first quarter of 1990.