Several European cases highlight to varying degrees the roles of direct and indirect crossborder credit in the course of the global credit boom of the 2000s (Graph 1). Direct crossborder credit to non-banks in Ireland (dark shaded area), for example, grew at roughly 40% year on year in the three years prior to the crisis (centre panel), 10 percentage points above the rate for domestic bank credit. Moreover, banks in Ireland drew on indirect cross-border credit (left-hand panel, dashed brown line) to support their domestic lending. Combined, these two cross-border components accounted for more than half of the stock of total bank credit to non-banks in the.
