Both cross-border and domestic bank credit are (generally) denominated in multiple currencies. The BIS international banking statistics in combination with domestic bank credit data from the IMF’s International Financial Statistics, along with some assumptions, yield an estimate of the currency breakdown of total credit to non-banks (either including or excluding bank credit to governments) in a particular country. This breakdown allows us to express credit stocks at constant exchange rates (in this particular case, end-Q2 2011 rates). This, in turn, yields credit growth rates that are (largely) undistorted by exchange rate movements and thus provides a better measure of credit growth
