UK-owned Financial Institutions Report Increased Foreign Finance Claims

UK-owned monetary financial institutions and their branches and subsidiaries worldwide have reported an increase in consolidated foreign claims on their finances, according to the Bank of England (BoE). This rose on an ultimate risk basis of US$172.5bn during 1Q11, to stand at US$4,097.6bn. The largest rise was to developed countries, up US$98.5bn to stand at US$2,626.2bn. The increase was well spread with the largest rises on the US and France. Claims on developing countries were up US$43.2bn to stand at US$905.4bn, with the largest increase in claims on China and Mexico.

Claims on offshore centres increased by US$28.2 bn to US$544.4 bn, with the largest rise in claims on Hong Kong. Developed countries had net outward risk transfers of US$22.3bn, with the largest from Ireland and the US. Offshore centres had net outward risk transfers of US$61.8bn, mostly from Hong Kong and the Cayman Islands. Developing countries had net inward risk transfers of US$11.3bn, with the largest net inward risk transfers reported to India and China.


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