You are on page 1of 4

Chart CM-A -- U.S. Liabilities to Foreigners Reported by U.S.

Banks, Brokers and Dealers with Respect to Selected Countries
2000 1800 1600 1400 Billions $ 1200 1000 800 600 400 UK 200 0 2003 2004 2005 2006 Sept. 2007 E O J A
UK

C C C C E J AO
UK

C
UK UK

E AO

E AO J

E AO J

J

United Kingdom (UK) Carribean Banking Centers (C) All Other Asia (A)

All Other Europe (E) Japan (J) All Other Countries (O)

(In millions of dollars. Source: Treasury International Capital Reporting System) Country 2003 2004 2005 2006 Sept. 2007 United Kingdom................... All other Europe................... Caribbean banking ctrs\1 Japan....................................... All other Asia........................ Subtotal.................................. All other countries............. Grand total........................ 345,235 462,334 955,536 170,315 214,276 2,147,696 234,774 2,382,470 501,721 611,774 1,186,221 173,872 260,142 2,733,730 284,143 3,017,873 590,505 691,138 1,200,444 161,951 256,934 2,900,972 285,773 3,186,745 926,008 641,538 1,666,943 140,402 299,497 3,674,388 327,615 4,002,003 1,059,242 718,732 1,808,085 170,819 333,838 4,090,716 377,662 4,468,378

\1 Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, and Panama. For data beginning June 2006, also includes the British Virgin Islands.

U.S. liabilities to foreigners reported by U.S. banks were recorded at $4.5 trillion in September 2007, an increase of $466 billion from yearend 2006. U.S. banking liabilities include foreign holdings of U.S. short-term securities but exclude foreign holdings of U.S. long-term securities. U.S. banking liabilities increased about $815 billion in 2006, about $169 billion in 2005, and about $635 billion in 2004. However, much of the increase in liabilities to foreigners in 2006 reflects changes in coverage in the bank reported data in the first and second quarters of 2006. Between June and December of 2006, when data are reported on a consistent basis, banking liabilities increased about $241 billion. U.S. banking liabilities are concentrated in international financial centers. The data on this page show that more than 60 percent of U.S. banking liabilities is currently recorded against the United Kingdom and banking centers in the Caribbean. These financial centers have recorded most of the growth in banking liabilities in recent years. Foreigners domiciled in the rest of Europe and in Asia account for about one-quarter of U.S. banking liabilities.

Chart CM-B -- U.S. Claims on Foreigners Reported by U.S. Banks, Brokers and Dealers with Respect to Selected Countries
1400 1200 1000 Billions $ 800 C 600 400 200 0 2003 2004 2005 2006 Jun. 2007 UK E J A O J A O J A O J O A O J A UK E C UK E C UK E C UK E C

United Kingdom (UK) Carribean Banking Centers (C) All Other Asia (A)

All Other Europe (E) Japan (J) All Other Countries (O)

(In millions of dollars. Source: Treasury International Capital Reporting System) Country 2003 2004 2005 2006 Jun. 2007 United Kingdom................... All other Europe................... Caribbean banking ctrs\1 Japan....................................... All other Asia........................ Subtotal.................................. All other countries............. Grand total........................ 385,701 401,137 612,200 74,174 65,922 1,539,134 160,865 1,699,999 567,001 527,615 755,954 102,859 70,601 2,024,030 164,411 2,188,441 627,105 604,908 870,441 114,713 92,387 2,309,554 190,845 2,500,399 938,064 666,015 1,062,579 155,587 89,236 2,911,481 220,989 3,132,470 1,046,461 867,770 1,165,452 129,058 104,082 3,312,823 263,489 3,576,312

\1 Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, and Panama. For data beginning June 2006, also includes the British Virgin Islands.

In June 2007, U.S. claims on foreigners reported by U.S. banks amounted to about $3.6 trillion, an increase of $444 billion from the level recorded at yearend 2006. U.S. banking claims include holdings of foreign short-term securities but exclude holdings of foreign long-term securities. U.S. banking claims increased $632 billion in 2006, but part of the increase reflects changes in coverage in the bankreported data in the first and second quarters of 2006. Between June and December of 2006, when data are reported on a consistent basis, banking claims increased about $201 billion. Banking claims increased $312 billion in 2005 and $488 billion in 2004. As with U.S. banking liabilities, U.S. banking claims on foreigners are concentrated in international financial centers. About 60 percent of these claims are reported opposite the United Kingdom and banking centers in the Caribbean. The share of claims against foreigners domiciled in Asia has declined over the past several years from about 20 percent at the end of 1996 to less than 10 percent currently.

Chart CM-C -- Net Purchases of Long-Term Domestic Securities by Foreigners, Selected Countries
900 700 Billions $ 500 300 100 -100 -300 2004 2005 2006 2007 Sept. YTD
(annualized rates)

UK UK UK UK E C J A O E C J A A O EC J O C E J E C J A O AO UK

2007 Jul.-Sept.
(annualized rates)

United Kingdom (UK) Carribean Banking Centers (C) All Other Asia (A)

All Other Europe (E) Japan (J) All Other Countries (O)

(In millions of dollars. Source: Treasury International Capital Reporting System) Country 2004 2005 2006 2007 Sept. YTD United Kingdom..................... All other Europe.................. Caribbean banking ctrs\1 Japan.................................... All other Asia......................... Subtotal.................................... All other countries................... Grand total........................ 254,112 110,153 87,638 247,114 130,399 829,416 87,040 916,456 363,593 146,910 102,259 79,814 187,284 879,860 131,680 1,011,540 476,119 131,427 152,322 58,387 226,313 1,044,568 121,376 1,165,944 449,326 -7,036 34,145 -16,329 177,156 637,262 104,248 741,510

2007 Jul.-Sept. 89,652 -32,967 -13,653 -20,933 14,249 36,348 7,954 44,302

\1 Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, and Panama. For data beginning June 2006, also includes the British Virgin Islands.

The data on this page represent foreign investors’ purchases and sales of long-term U.S. securities (that is, U.S. Treasury and Government agency bonds and notes, and U.S. corporate bonds and stocks) as reported to the Treasury International Capital (TIC) reporting system. Foreign investors also acquired U.S. equities through mergers and reincorporations that involve stock swaps. Net foreign acquisitions of U.S. equities through stock swaps have been modest, amounting to $2 billion in 2003, $36 billion in 2004, $6 billion in 2005, $4 billion in 2006, and $7 billion in the first three quarters of 2007. (Stock swaps data for the most recent quarter are Federal Reserve Board/Treasury estimates and are subject to substantial revisions.) These stock swaps are not reported under the TIC reporting system, but are available on the TIC web site. The TIC website also provides estimates from the Federal Reserve Bank of New York on principal repayment flows on foreign holdings of U.S. government agency and corporate asset-backed securities (ABS). These repayments, also not reported under the TIC system, are estimated to have reduced foreign net purchases of U.S. securities by $123 billion in 2003, $86 billion in 2004, $144 billion in 2005, $155 billion in 2006, and nearly $148 billion in the first three quarters of 2007. Net foreign purchases of U.S. securities first surpassed $100 billion in 1993. In 2003, net foreign acquisitions of U.S. securities (including stock swaps and accounting for ABS repayment flows) totaled $599 billion. Net acquisitions picked up to $866 billion in 2004, grew a bit further to $873 billion in 2005, and reached a new record of nearly $1,015 billion in 2006. Net purchases were $601 billion in the first three quarters of 2007, a pace of acquisition below that in 2006 because of a slow third quarter.

Chart CM-D -- Net Purchases of Long-Term Foreign Securities by U.S. Investors*
400 350 300 250 Billions $ 200 150 100 50 0 -50 -100 2003 2004 2005 2006 2007 Sept. YTD
(annualized rates)

T T S T B S B T S B B S S

T

T B S

B 2007 Jul.Sept.
(annualized rates)

Foreign Bonds (B)

Foreign Stocks (S)

Total Foreign Securities (T)

Type

(In millions of dollars. Source: Treasury International Capital Reporting System) 2003 2004 2005 2006 2007 2007 Sept. YTD Jul.-Sept. -32,046 88,587 56,541 67,872 84,970 152,842 45,095 127,296 172,391 144,090 107,703 251,793 119,269 103,288 222,557 40,526 28,512 69,038

Foreign Bonds...... Foreign Stocks...... Total......................

* Net purchases by U.S. investors equal net sales by foreigners, or gross sales minus gross purchases of securities.

The data on this page represent U.S. investors’ purchases and sales of long-term foreign securities as reported to the Treasury International Capital (TIC) reporting system. However, in the past several years, U.S. investors also have acquired a substantial amount of foreign stocks, mostly European, through mergers that involve stock swaps. In addition, when foreign firms reincorporate in the United States, the associated stock swap reduces U.S. holdings of foreign equity. Net acquisitions through stock swaps amounted to $80 billion in 2000, $47 billion in 2001, $3 billion in 2002, $17 billion in 2003, -$12 billion in 2004, $8 billion in 2005, $21 billion in 2006, and $9 billion in the first three quarters of 2007. (Stock swaps data for the most recent quarter are Federal Reserve Board/Treasury estimates and are subject to substantial revisions.) These stock swaps are not reported under the TIC reporting system, but are available on the TIC web site. Including the stock swaps, annual U.S. net purchases of long-term foreign securities averaged about $100 billion from the mid-1990s through 2000, without much variation from year to year. U.S. investors’ acquisitions of foreign securities (including stock swaps) then slowed over the 2001-2003 period before rebounding to $141 billion in 2004 and $180 billion in 2005. The pace of U.S. acquisitions picked up further in 2006, as U.S. investors acquired $272 billion in foreign securities. This strength continued in the first three quarters of 2007, as U.S. investors acquired $231 billion in foreign securities.