Cross-boarder lending by banks increased at the slowest pace in thirteen months in the third quarter as a gain in credit to non-banks was partially offset by declines in claims on banks, especially in the Eurozone, a report from the Bank for International Settlement (BIS) said Monday. International lending by banks that report to the BIS edged up 0.1 percent or by $33 billion in the third quarter from the preceding three months. Driving the modes growth, lending to non-banks moved up 1.4 percent sequentially. Partially offsetting this expansion, lending to banks dropped by 0.7 percent. The growth in overall claims was concentrated in those denominated in US dollars, sterling and non-major currencies, which increased by 0.5 percent, 4.5 percent and 3.8 percent, respectively. Meanwhile, claims denominated in euros fell the most, by 3.6 percent, as foreign banks reduced their exposure to the euro area in view of the region's deepening debt crisis. Cross-border claims on mature economies increased by 0.5 percent during the three-month period, marking the first increase after three successive contractions. Meanwhile, credit to financial institutions in emerging market economies and offshore financial centers declined by 0.9 percent compared to the second quarter, with claims on banks falling 3.3 percent. However, lending to non-bank borrowers increased modestly by 1.7 percent.