Full text of E.16 Country Exposure Lending Survey : June 3, 1977

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FEDERAL

June!, 1977

For immediate release

RESULTS OF FEDERAL RESERVE SURVEY ON FOREIGN CLAIMS OF U.S. BANKS

The Board of Go-ernors of the Federal Reserve System
today issued the results >f a survey of U.S, banks' claims on
foreigners.

The survey covered more than 80 reporting banks with

total assets of $1 billion or more and $50 million or more in claims
on the countries in the survey.

The results of the survey will be

combined by the Bank for International Settlements (BIS) with reports
from other participating central banks to provide aggregate data on
m e external bank indebtedness of countries outside the Group of Ten
Countries (G-10),
The survey indicated that reporting U.S. bank claims on
countries outside the G-10 -- other than offshore banking centers -amounted to $77 billion at the end of 1976, of which $42 billion was
on the non-oil exporting developing countries.
The survey also collected information on the extent to which
foreign claims of U.S. banks were guaranteed by parties outside the
borrowing countries.

Approximately nine per cent of the total claims

were externally-guaranteed, with thr percentage guaranteed for most
countries ranging between five and fifteen per cent.




These estimates

-2-

are probably lower ranges for the external support for these claims,
because the instructions to the report form requested banks to report
as guaranteed only those claims which were irrevocably guaranteed
by a party or parties outside the borrowing country and not to include,
as guaranteed, those claims covered by "comfort letters" or
similar agreements.
The survey also requested information on the maturity distribution of the claims at the banks1 domestic offices and offices
in the offshore banking centers.

Claims at these offices accounted

for a large proportion of total U,S, bank claims on many countries,
and thus the maturity data are a close approximation to the maturity
distribution of total U.S. bank claims on these countries.

The survey

indicated that slightly more than one-half of U.S, bank claims on
the countries in the survey had less than one year remaining to maturity.
Because of differences in coverage and definitions, the
data in the survey differ from other data published on the foreign
claims of U.S. banks.

The principal differences are:

(1) this survey

is based on reports from a sample of U.S. banks; (2) the data collected
in the survey include claims of foreign subsidiaries of U.S. banks
while other published data include only claims reported by domestic
offices and foreign branches; and (3) this survey requested banks to
omit each office's local currency claims on residents of the country




-3-

in which the office is located because such claims are not considered
to represent "cross border" exposure to the banks.

Other published

data included sizable amounts of such claims for some countries.
As a memorandum item, data are presented on U.S. bank claims
on the offshore banking centers.

These data are not directly com-

parable to the information on claims on other countries because they
largely represent short-term interbank balances with banks having
head offices in G-10 countries, including balances placed with other
offices of U.S. banks.

Attachment




U . S . B a n k C l a i m s on Selected Foreign C o u n t r i e s :
(millions o f d o l l a r s )

Total Claims
of Reporting BanksU
Percent
Externally
Guaranteed
Amount
I-

Maturity Distribution of
Claims of Domestic Offices Jand
Offices in Offshore Banking Centers
Amount Maturing Iri :
Over
Total
One Year Over One Year
Claims Or Less
To Two Years
Two Years

14,358

8.2

8,171

3 ,690

l_,412

3,069

1,049
1,296
19
1,175
1,353
77
407
1,820
450
3.137
2,236
1,339

19.5
6.3
15.8
1.6
8.7
4.7
12.4
0.7
8.7
6.1
6.5

111
850
12
627
586
74
277
707
333
1,882
1,581
965

165
483
10
199
195
37
58
286
260
596
841
555

39
97
2
126
1.31
15
83
131
31
367
217
173

73
265
-302
260
22
136
290
42
919
52 3
237

Non-Oil Exporting Developing
Countries

42,187

10.9

37^,381

19L621

4,668

LLO92

A. Latin America

29,600

7.3

27,013

12,525

1,670

10,818

1,847
337
10.437
620
1,472
338
283
201
287

10.0
2.9
10.6
5.8
4.3
8.9
4.6
3.0
1.7

1 ,687
305
9 ,349
606
1 ,381
306
239
187
229

954
146
3,304
424
1,034
115
128
106
75

231
42
1,453
93
126
53
30
21
85

502
117
4,592
89
221
138
81
60
69

N o n - G - 1 0 Developed

Countries

Au s t r i a
Australia
Cyprus
Finland
Greece
Iceland
New Zealand
Norway
Portugal
Spain
South Africa
Turkey
11.

December 1976

Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ei Salvador
Guatemala



- 2 -

Total Claims
jy
of Reporting Banks"
Percent
Externally
Amount
Guaranteed
II.

Maturity Distribution of
Claims of Domestic Offices and
Offices in Offshore Banking Centers
Amount Maturing In:
Total
One Year Over One Year
Over
Claims Or Less
To Two Years
Two Years

Non-Oil Exporting Developing
Countries cont'd
A.

Latin America cont'd
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Paraguay
Peru
Trinidad & Tobago
Uruguay

B.

Asia

Bangladesh
China (PRC)
China (Taiwan)
India
Israel
Jordan
Korea (South)
Malaysia
Pakistan
Papua New Guinea
Philippines
Sri Lanka
Syria
Thailand


20
22
193
304

45.0
-9.3
2.0
5.0
3.7

19
22
163
291

5
16
82
147

5
-2]
39

4,680

1,236

270
28
949
16
46

34
3
190
1
7

9
6
60
105
3,967
125
9
597
3
68

814

1,749

10 ,746
459
60
1 ,810
28
136

11.7
5. 1

9 ,883
429
40
1 ,736
20
121

10 ,366

6.1

8 ,918

6,355

31
11

16.1
90.9

21
1

21
1

1 ,858
288
583
15
2 ,795
512
46
19

1,343

2 ,100
395
692
19
3 ,070
649
165
23
2 ,368
35
82
726

6.6
3.6

4.5
1.3

15.5
10.5
4.7
6.3
4.2
-6.5
2.9
9.1

101
450
7

2,141
212
44
3

2 ,034

1,387

30
75
641

27
74
544

——

162
59
68
2
221
102
-4
167
I
1
27

353
128
65
6
433
198
2
12
480
2
70

-

3 -

Total Claims
jy
of Reporting Banks"'
Percent
Externally
Guaranteed
Amount
II.

Maturity Distribution of
Claims of Domestic Offices and
Offices in Offshore Banking Centers
Amount Maturing In:
Over
Total One Year Over One Year
Two Years
To Two Years
Claims Or Less

Non-Oil Exporting Developing
Countries cont'd
C.

Africa.
Angola
Cameroon
Congo (Brazzaville)
Egypt
Ethion La
Ghana
Guinea
Ivory Coast
Kenya
Malawi
Morocco
Mozambique
Senegal
South-West Africa
Sudan
Tanzania
Tunisia
Zaire
Zambia




2.221

19.3

27

59.3
9.1
100.0
8.9

33
12
598

14
75
12

241
26
38
308

47
32

17
216
10

81
258
176

4.0
100.0
13.7

3.8

1,450

741

184

21

10

26
12
279
14
61

7

3
7
1
22
2
-..
35
1

12
163
17

1
2 30
8
Ud
-43

14

525
8
12
10
27
4
1>
12
85
2

4

t

2

1

106

41

115
2

2
91

4
4
7

56.6

262
5
22
17
139
9
70
221

9
63
69

2
35

14
11
41
-5
117

3.4

96

34

18

44

86.8
10.4
---36.1

-0.8

3

Total Claims x/
of Reporting Banks'"
Percent
Externally
Amount
Guaranteed
Eastern Europe
Bulgaria
Czechoslovak L'i

E. Germany
Hungary
Poland
Romania
U.S.S.R.

Yugoslavia
IV

Oil-Exporting Cimntries
Algeria
Brunei
Ecuador
Gabon
Indonesia
Iran
Iraq
Kuwait
Libya
Nigeria
Oman
Qatar
Saudi Arabia
United Arab Kinf rates
Venezuela




6,020

5.7

408
130
740
590

0.8
7.4

Maturity Distribution of
Claims of Domestic Offices and
Offices in Offshore Banking Centers
Amount Maturing In:
Over
Total One Year Over One Year
TWo Years
Claims Or Less
To Two Years
2,974

816

685

191

68
4
198
23
166
49

7

159
149

46
2
80
52
127
17
147
214

1,473

77
1
77
205
287
12
482
332

1,553

3.3
1.7
1.2

987

22.4

355
280
580
78
788
695

12,473

8 4

10,526

£J26

95b

2.844

1,234

17 3

-5 2

922
12
605
77

2.067
1,390

9 4
19. 3

131
4
91
16
297

73
371
110
70
66
32
600
568

5.5
1.6
-—
-9.4
3.3
3.3
5.5

158
1
314
12
987
726
4
251
59
35
23
9
489
157
3, 501

633

13
660
126

1,261

351

5,093

16

1,893
1,129

46
263

63
40
47
12
499
234
4,684

124
15

5
1
6
1
3
31
231

7
200
49
609
279
27

7
3
5
18
2
7
46
952

- 5 -

Total Claims
.
of Reporting BanksPercent
Externally
Amount
Guaranteed
V.

Miscellaneous
Liberia

Total Claims on Ncn-G-10
Countries other than
Offshore Banking Centers

Memorandum:
Offshore Banking Centers
Bahamas
Bahrain
Barbados
Bermuda
Caymans and other British
W. Indies
Hong Kong
Lebanon
Nether lands Overseas Ter.
New Hebrides
Panama
Si ngaporc
U
II

Maturity Distribution of
Claims of Domestic Offices and
Offices in Offshore Banking Centers
Amount Maturing In:
Total
One Year Over One Year
Over
Claims Or Less
To Two Years
Two Years

1,788
91

69.2
12. 1

1,211

326
51

187
3

9.2

60,327

31,230

,911

4j>.801

10.3

25,727

24,063

680

984

24 ,338
2 ,737
15

6.0
3.0

12,720

12,519
1,005

144
1

446

20.0
12. 1

23
369

16
252

57
1
2
33

7 ,006
3,185

20.8
11.0

5,337
2,318

4,937
2,099

153
623
37

7.8
29.7

135
488
32

70
334
29

376
47
24
31
-90
19

24
172
41
123
3
32 3
64

76,

2 ,831
4 ,4 30

_21.3
10.5

1,007

1,927
1,371

1,514
1,288

Includes data for IF. S. offices and all foreign branches and subsidiaries.
Includes all countries on which reported claims were less than $10 million.




698
10

64

5
84