Loans from nonresident banks (net) to GDP (%)

This financial metric represents the proportion of net loans sourced from foreign banks relative to a country's gross domestic product, providing insights into a nation's reliance on external financing. Offshore banks, which operate outside the depositor's country—often in jurisdictions with favorable tax regulations—offer distinct advantages such as enhanced privacy and regulatory benefits. By analyzing data from the BIS Statistical Appendix, this ratio not only reflects the health of a country’s external funding landscape but also indicates potential vulnerabilities related to foreign debt. A higher percentage may signal increased dependency on nonresident loans, influencing economic stability and foreign investment dynamics, while also shedding light on broader monetary flows and international economic relations. Source: