Further details about consolidated worldwide claims data

This dataset covers the claims of a sample of UK-owned monetary financial institutions (MFIs), and their branches and subsidiaries worldwide, on all non-resident countries.

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Overview

This can be used to provide a ‘map’ of where the exposures of UK-owned MFIs lie. Claims of foreign-owned MFIs in the UK are excluded, as is all intra-group business.

MFIs are banks and building societies, excluding the Bank of England.

The amounts outstanding are reported to us in sterling regardless of the underlying currency. Figures are then translated into US dollars at the end quarter exchange rate.

When are consolidated worldwide claims data published?

We publish these data in the consolidated worldwide claims statistical release once a quarter, with a lag of approximately one quarter.

Changes to this dataset

The dataset has undergone several enhancements since we started publishing it.

Since 2004 Q1, we have made available quarterly data with a more detailed breakdown of risk transfers, allowing a greater analysis of claims on an ultimate risk basis, and more comprehensive breakdowns of the data, both by sector and by classification. We introduced some definitional changes at the same time. Further details on these changes and other improvements to the consolidated dataset implemented from 2004 Q4 are available in the Statistics article ‘Consolidated external claims of UK-owned banks: a new dataset’.

Since 2009 Q1 the dataset has included data reported by building societies. This follows the transition of building societies’ statistical reporting from the Financial Services Authority to the Bank of England on 1 January 2008.

From 2014 Q1 we introduced further enhancements to the dataset, to include a more granular sector breakdown and positions vis-à-vis the UK. Further information on these enhancements can be found in the Statistics article ‘Enhancements to the International Banking Statistics’.

Available data

Data for total foreign claims on an immediate borrower basis against individual countries and split by sector is also available.

Data are available split by sector: deposit-taking corporations, public sector and other sectors. From 2014 Q1, we have also split ‘other sectors’ by other financial corporations, non-financial corporations and households. Any residual amounts are then shown as unallocated by sector.

Data are also available by type and maturity:

In addition, data on derivativesdata on guarantees and data on other credit commitments is also available on an immediate borrower basis.

Data on risk transfers are also available. 

Data for outward risk transfers are available against individual countries and split by sector: deposit-taking corporationspublic sector and other sectors. Since 2014 Q1, ‘other sectors’ has also been split by other financial corporationsnon-financial corporations and households, with any residual amounts shown as unallocated by sector

Data for inward risk transfers are also available, split by sector: deposit-taking corporationspublic sector and other sectors. Since 2014 Q1, a further split of other sectors has been available by: other financial corporationsnon-financial corporations and households, with any residual amounts shown as unallocated by sector.

We provide these data to the Bank of International Settlements (BIS), which combines them with comparable data for other reporting countries to produce a worldwide view of consolidated claims.

Sources of consolidated worldwide claims data

These data are collected from a sample of monetary financial institutions which report directly to us on Form CE.

Revisions to this data

All data are subject to revision if and when new data become available. For more information on revisions practices see further details about revisions.

Definitions

Total foreign claims are made up of cross-border claims plus local claims in foreign and local currency. This is shown on an ultimate risk and immediate borrower basis. Claims on an immediate borrower basis represent where the initial claim lies. This does not necessarily provide an accurate picture of the real exposures of reporting monetary financial institutions, since the initial claim may be guaranteed by another entity operating in a different country or sector to the immediate borrower. Therefore, to build a more accurate picture of true exposures, we collected data on risk transfers, and use them to construct a measure of claims on an ultimate risk basis.

A risk transfer between countries or sectors occurs where the repayment of a claim is effectively guaranteed by residents of other countries or institutions in other sectors. Outward risk transfers show claims that arise when the borrower is a branch of a bank with a head office located in a different country or operating in a different sector, or when a third party located in a different country or sector from the original borrower guarantees, under the terms of a formal, legal and irrevocable agreement, to repay the claim should the original borrower fail to do so. Outward risk transfers may also be reported when collateral is provided to offset the risk that the original borrower or lessee fails to repay, and where credit derivatives are used to cover the financial risk of financial claims in the banking book. An inward risk transfer is reported to the country of residence of the guarantor and represents a contingent liability of those countries. This risk may be reallocated to a different sector to that in which the original borrower operates.

Up until 2013 Q4 the total of inward risk transfers included in Consolidated claims and unused commitments of UK-owned monetary financial institutions (excluding central bank) and their branches and subsidiaries worldwide (Table C4.2) differed from the total of outward risk transfers. Part of the difference represents net cross border transfers of risks to or from the UK, including transfers of risk associated with Export Credit Guarantee Department (ECGD)-backed lending to other countries. The remaining element represents where cash collateral is present, requiring an outward risk transfer to be reported without an associated inward risk transfer. Details of these transfers and a reconciliation with the risk transfers are provided in the footnotes to series VPQB4S93P and VPQB4S53P. From 2014 Q1, the treatment of cash collateral was amended such that an associated inward risk transfer is reported vis-à-vis the UK deposit-taking corporations sector.

Total claims on an ultimate risk basis are calculated as follows:

  • Total external claims on an immediate borrower basis plus net risk transfers.
  • Net risk transfers equals inward risk transfers minus outward risk transfers.
  • External claims comprise cross-border and local claims in all currencies.

Cross-border claims  are made up of external lending by UK offices of UK-owned monetary financial institutions in sterling and foreign currencies, and cross border lending by UK-owned non-resident branches and subsidiaries in local and non-local currency, other than to the UK. Since 2014 Q1, cross-border lending by UK-owned non-resident branches and subsidiaries in local and non-local currency has been available as a supplementary item vis-à-vis the UK.

Local claims in foreign and local currency are made up of lending by non-resident branches and subsidiaries of UK-owned MFIs to local residents in both non-local and local currency. From 2014 Q1, local claims in sterling and foreign currencies by UK offices of UK-owned monetary financial institutions are available as a supplementary item vis-à-vis the UK.

Total foreign claims includes loans and advances, balances with non-residents, amounts receivable under finance leases, claims under sale and repurchase agreements, commercial bills, certificates of deposit and lending under Export Credits Guarantee Department bank guarantee. It includes securities issued by foreign governments, international organisations (e.g. the European Investment Bank) and corporate institutions registered outside the UK (not including the reporting institution's own subsidiaries and associates outside the UK). It also includes portfolio investments, e.g. investments with and without a contractual repayment date. It also includes sterling and other currency acceptances given under facilities opened on behalf of non-residents. Since 2014 Q1, total foreign claims vis-à-vis the UK have also been available.

International organisations and central monetary institutions (CMIs) are reported within the public sector.

Maturities are classified by reference to the period remaining to maturity, not the original period of the loan. Any overdue repayments are included within the data for 'six months and under'.

Derivatives comprise all cross-border and local resident financial claims resulting from derivative contracts, independent of whether the contract is booked as off or on balance sheet. These are not included within total foreign claims.

Guarantees include credit default swaps sold, which are reported on a gross (not net) notional value, but net of cash collateral vis-a-vis the country of underlying reference entity. Any credit default swaps bought by reporting banks are not included within guarantees. The reporting of credit default swaps sold within guarantees does not include any risk transfers.

Unused commitments are the unutilised portion of both binding contractual obligations and those commitments that reporting banks would regard themselves as obliged to honour under any circumstances. They comprise guarantees and other credit commitments. Only commitments which would qualify as a foreign claim, if utilised, are included. Unused commitments are not included within total foreign claims.

Valuation

Financial claims in the form of loans and receivables originated by the bank (and not held for trading) as well as ‘held to maturity investments’ are valued at face value or amortised cost price, while ‘available for sale’ financial assets and financial assets held for trading are valued at market or fair values. This is largely consistent with the International Accounting Standards (IAS 39).

Financial claims resulting from derivative contracts are valued at market prices or fair values (i.e. current credit exposure calculated as the sum of all positive market values or fair values of derivative contracts outstanding after taking account of legally enforceable bilateral netting agreements) as this ensures consistency with the concept of ‘current credit exposure’ in the Bank for International Settlement over-the-counter derivatives statistics.

Negative market values of derivative contracts are considered to represent financial liabilities and are therefore by definition excluded from the reporting of financial claims.

Contingent liabilities resulting from guarantees and credit commitments are valued at face value or the maximum possible exposure. This includes sales of credit default swaps that fall under guarantees which are reported at face value rather than mark to market.

Until they are written off, interest in arrears on financial claims and principal in arrears (including capitalised interest) are included in the data on financial claims.

Financial claims against which provisions have been made are normally reported as foreign assets at their gross value. However, accounting rules may require in certain instances that these claims be reported on a net basis if there is an identified loss. Both reporting conventions are therefore possible.

Although an asset which has been written off may still be a legally enforceable claim, these are excluded from the reported data as the process of writing-off can be seen as reflecting the judgment that the current or prospective price of the claim is zero. The same reporting convention is followed for reductions in claims due to debt forgiveness, i.e. cancellations of claims via contractual arrangements between debtors and creditors.

The net position of portfolio investments (including dealing portfolios) is included. Where this netting results in a net short position, this is deducted from any other claims in the column.

When the reporting institution acts as manager or co-manager of a loan financed by more than one institution, it reports only that part of the loan which it retains (i.e. its own participation). Other participants’ shares of the amount to be lent are not included. A reporting institution which buys all or part of a loan from another financial institution will report its holding as an advance to the borrower, and not as lending to the institution from which it has purchased the loan.

Region and country details

Some figures for individual countries may be omitted (indicated by ..) for reasons of confidentiality. These amounts, which are generally small are, where possible, included in the area totals. The country groups are the same as those used by the Bank for International Settlements. Individual countries on which claims are very small are included in ‘other’ countries in the geographical analysis. Totals may not be the sum of component parts due to rounding.

Regions

Developed European countries includes Andorra, Austria, Belgium, Cyprus, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Greece, Greenland, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Portugal, Republic of Ireland, Republic of Slovakia, Slovenia, Spain, Sweden, Switzerland and Vatican City State.

Total developed countries includes developed European countries, Australia, Canada, Japan, New Zealand and United States.

Offshore centres includes Aruba, Bahamas, Bahrain, Barbados, Bermuda, Cayman Islands, Curacao, Gibraltar, Guernsey, Hong Kong, Isle of Man, Jersey, Lebanon, Macao, Mauritius, Netherlands Antilles (until 2011 Q2), Panama, Samoa, Singapore, Sint Maarten, West Indies UK and Vanuatu.

Developing Europe includes Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Macedonia, Moldova, Montenegro (from 2007 Q2), Poland, Romania, Russia, Serbia (from 2007 Q2), Serbia and Montenegro (to 2007 Q1), Turkey and Ukraine.

Latin America and the Caribbean includes Argentina, Belize, Bolivia, Bonaire St Eustatius and Saba, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Falkland Islands, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Paraguay, Peru, Saint Lucia, St Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands, Uruguay and Venezuela.

Africa and Middle East includes Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Iran, Iraq, Israel, Ivory Coast, Jordan, Kenya, Kuwait, Liberia, Libya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Morocco, Mozambique, Namibia, Niger, Nigeria, Oman, Palestinian Autonomy, Qatar, Rwanda, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, St Helena, Sudan (from 2012 Q2 excludes South Sudan), South Sudan (from 2012 Q2), Swaziland, Syria, Tanzania, Togo, Tunisia, Uganda, United Arab Emirates, Western Sahara, Republic of Yemen, Zaire, Zambia and Zimbabwe.

Asia and Pacific includes Afghanistan, Armenia, Azerbaijan, Bangladesh, Bhutan, British Overseas Territories, Brunei, Cambodia, Canton and Enderbury Islands, People's Republic of China, East Timor, Fiji, French Polynesia, Georgia, India, Indonesia, Kazakhstan, Kyrgyzstan, Kiribati, Democratic People's Republic of Korea, Republic of Korea, People's Democratic Republic of Lao, Malaysia, Maldives, Marshall Islands, Micronesia, Mongolia, Myanmar, Nauru, Nepal, New Caledonia, Palau, Pakistan, Papua New Guinea, Philippines, Solomon Islands, Sri Lanka, Taiwan, Tajikistan, Thailand, Tonga, Turkmenistan, Tuvalu, US Trust Territories in the Pacific, Uzbekistan, Socialist Republic of Vietnam and Wallis and Fortuna Islands.

Countries

British Overseas Territories includes British Antarctic Territory, British Indian Ocean Territory and Pitcairn Islands.

France includes French Guiana, French Southern Territories, Guadeloupe, Martinique, Monaco, Reunion and St Pierre and Miquelon.

United Arab Emirates includes Abu Dhabi, Dubai and Other United Arab Emirates.

United States includes US Virgin Islands.

West Indies UK includes Anguilla, Antigua and Barbuda, British Virgin Islands, Montserrat and St Christopher/St Kitts-Nevis.

Please note that claims on the Bank for International Settlements (BIS) are included within claims on the public sector in Switzerland, and claims on the European Central Bank (ECB) are included within claims on the public sector in Germany.

'Former' countries

Claims against former Czechoslovakia and former Soviet Union are no longer collected. Any data that was previously reported against these countries are now reallocated to the appropriate successor country or to unallocated.

Claims against former Yugoslavia are no longer collected. Any remaining data that was previously reported against former Yugoslavia are now reallocated to the appropriate successor country or unallocated. Serbia and Montenegro, which accounted for a large proportion of former Yugoslavia figures, is shown separately from 2004 Q2 until 2007 Q1. Serbia is shown separately from 2007 Q2, while Montenegro is included in ‘other’ within developing Europe from 2007 Q2 to 2015 Q2 and is shown separately from 2015 Q3.

From 2011 Q2, business previously reported against the Netherlands Antilles is reported separately against Curacao, Sint Maarten and the islands group Bonaire, St Eustatius and Saba. Curacao is listed separately in the offshore centres regional grouping. Bonaire, St. Eustatius and Saba are included within ‘other Latin America and Caribbean’. Sint Maarten is included within ‘other offshore centres’ up until 2015 Q2 and is available separately from 2015 Q3.

Countries not shown separately

Countries not identified will be grouped by region as ‘countries not separately identified’. These groups will also include any data suppressed for confidentiality within the separately identified countries within that region. From 2015 Q3, additional counterpart country data were made available. As a result the composition of other countries not separately identified for each geographic region also changed with effect from 2015 Q3. Further information can be found in the article ‘Publication of additional information on the locational and consolidated international banking statistics’.

The countries within each group are:

Developed European countries not separately identified (2015 Q3 onwards) includes Faroe Islands and San Marino.

Developed European countries not separately identified (pre 2015 Q2) includes Faroe Islands, Greenland and San Marino.

Since 2015 Q3 all countries in offshore centres have been separately available.

Offshore centres not separately identified (pre 2015 Q2) includes Aruba, Samoa, Sint Maarten and Vanuatu.

Developing European countries not separately identified (pre 2015 Q2) includes Belarus, Macedonia, Moldova and Montenegro (from 2007 Q2).

African and Middle East countries not separately identified (2015 Q3 onwards) includes Benin, Central African Republic, Comoros, Eritrea, Guinea-Bissau, Niger, Somalia, South Sudan and Western Sahara.

African and Middle East countries not separately identified (pre 2015 Q2) includes Benin, Burkina Faso, Burundi, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Gabon, Gambia, Guinea, Guinea-Bissau, Lesotho, Madagascar, Mauritania, Namibia, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, St Helena, South Sudan, Swaziland, Togo and Western Sahara.

Asian and Pacific countries not separately identified (2015 Q3 onwards) includes Bhutan, French Polynesia, Myanmar, New Caledonia, Kiribati, Democratic People’s Republic of Korea, Micronesia, Nauru, Palau, Tajikistan, Tonga, Tuvalu and Wallis and Futuna Islands.

Asian and Pacific countries not separately identified (pre 2015 Q2) includes Bhutan, Canton and Enderbury Islands, Fiji, French Polynesia, Georgia, Kirgizstan, Kiribati, Democratic People's Republic of Korea, People's Democratic Republic of Lao, Maldives, Mongolia, Myanmar, Nauru, New Caledonia, Papua New Guinea, Solomon Islands, Tajikistan, Tonga, Tuvalu, US Trust Territories in the Pacific and Wallis and Fortuna Islands.

Latin American and Caribbean countries not separately identified (2015 Q3 onwards) includes Bonaire, St Eustatius and Saba, Haiti and Nicaragua.

Latin American and Caribbean countries not separately identified (pre 2015 Q2) includes Bonaire St Eustatius and Saba, Dominica, Falkland Islands, Grenada, Guyana, Haiti, Nicaragua, Saint Lucia, St Vincent and the Grenadines and Suriname.

Further information

More detail on the background to the consolidated dataset and changes introduced in December 2004 can be found in a Statistics article entitled Consolidated external claims of UK-owned banks: a new dataset’.

More detail on the use and availability of international banking statistics can be found in a Statistics article entitled Developments in UK international banking statistics.

More detail on the additional counterparty country information included in Consolidated claims and unused commitments of UK-owned monetary financial institutions (excluding central bank) and their branches and subsidiaries worldwide (Table C4.2) can be found in a Statistics article entitled Publication of additional information on the locational and consolidated international banking statistics.

This page was last updated 10 October 2018
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