This article continues the annual series on developments in international capital and banking markets. The article has a short overview, followed by sections on capital markets and international banking developments. There are features on multiple-option facilities and offshore banking centres.
- Activity in international capital markets slowed in 1987 while banks' international lending remained strong. There was a shift in the pattern of borrowing from eurobond issues to syndicated credits.
- The equity market crash accelerated a shake-out of excess capacity in the eurobond market, led to increased tiering of interest rates in international bond markets and reinforced the shift away from securitised financing.
- The Japanese retained their major presence in international financial markets as intermediaries, investors and borrowers. The yen increased its share of cross-border banking business.