Chapter

International Banking Statistics in Capital Flow Measurement

Author(s):
International Monetary Fund
Published Date:
June 1992
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Author(s)
Stephen P. Taylor
Table 2.
Table 2 (concluded)
19861987198819891987-89 average
Part H. Percent of totals, excluding Luxembourg
United States52.060.539.950.8
United Kingdom16.116.218.316.9
Germany10.79.64.98.4
Canada4.82.38.95.3
Other16.511.427.918.6
Part I. Japanese bank holdings of international securities
Total positions73,20098,700114,500130,000
Owed by nonbanks21,56029,61O34,35039,000
Net changes in nonbank
stocks7,6504,7404,6505,680
Distributed as in Part H
United States3,9752,8661,8562,899
United Kingdom1,231770853951
Germany816455227499
Canada364108415296
Other1,2645411,2991,035

Japanese investors, as reported by the Japanese Security Dealers Association. These transactions include sizable amounts of securities bought in Luxembourg that are not relevant to this exercise because Luxembourg plainly is a trading location rather than the residence of the security issuers. Although other countries in the listing also may serve partly as trading locations, the lack of further information means that they are treated as actual security issuers. On that basis, Part H distributes net Japanese purchases geographically, according to each country’s percentage share in the group total, omitting Luxembourg.

Finally, the trading proportions for all Japanese investors are used in Part I of the table to distribute Japanese banks’ net buying of nonbank securities among the group of issuing countries. A major assumption in this step is clearly that Japanese banks trade in foreign securities in the same geographic markets as other Japanese investors. Another important assumption is that nonbank securities are only 30 percent of total portfolio purchases by Japanese banks, rather than the 75 percent used for other BIS banks in Part E.3 The figures in Part I are the Japanese-bank amounts included in Part F, and it is the three-year averages in Part F that are used in Table 35 of the Report on Capital Flows,

Annual Comparisons Between IBS and Balance of Payments Statistics for Nonbank “Other” Capital Flows of Major Countries

The three tables in this section present the annual data used in Chapter 6 of the Report on Capital Flows to make the 1986-89 average comparisons between BOP and IBS flows of “major countries.” The tables here elaborate on Tables 32, 33, and 35 of the Report on Capital Flows. They cover countries with large non-bank positions in IBS and for which balance of payments entries are closely comparable to the nonbank flows derived from IBS. The balance of payment items in Tables 3, Table 4 and Table 5 are those described earlier in Table 1.

Table 3.Nonbank Claims on Foreign Banks: Comparison of IBS and National Balance of Payments Data, 1986-89 Countries That Use International Banking Statistics(In billions of U.S. dollars: net increase (+))
Residence of nonbanks19861987198819891986-89

average
Canada
IBS1.51.8−2.40.50.4
BOP1.7−0.70.2−0.20.3
Difference−0.22.5−2.60.70.1
Ireland
IBS0.60.1−0.11.20.5
BOP0.60.1−0.11.20.5
Difference
Germany
IBS16.45.56.024.913.2
BOP17.64.85.719.311.9
Difference−1.20.70.35.61.3
Mexico
IBS0.13.20.5−0.30.9
BOP0.23.30.40.21.0
Difference−0.1−0,10.1−0.5−0.1
Totals, countries above
IBS18.610.64.026.314.9
BOP20.17.56.220.513.6
Difference−1.53.1−2.25.81.3
United Kingdom, with additions to IBS1
IBS4.35.52.18.95.2
BOP4.08.56.515.48.6
Difference0.3−3.0−4.4−6.5−3.4
IBS: Exchange-rate-adjusted net flows in the IMF’s international banking statistics.BOP: Counterpart flows in national balance of payments statistics.

U.K. national amount consists of IBS flows plus national figures for financial institutions assumed not to be included in IBS nonbank flows.

Table 4.Nonbank Claims on Foreign Banks: Comparison of IBS and National Balance of Payments Data, 1986-89 Major Countries That Do Not Use International Banking Statistics but That Have Balance of Payments Items Comparable to IBS(In billions of U.S. dollars: net increase (+))
Residence of nonbanks19861987198819891986-89 average
Austria
IBS0.6−0.10.10.90.4
BOP
Difference0.6−0.10.10.90.4
Belgium-Luxembourg
IBS3.6−0.2−2.710.92,9
BOP−0.6−0.50.8−0.1
Difference3.60.4−2.210.13.0
Brazil
IBS2.1−0.91.22.41.2
BOP0.1−.0.10.1
Difference2.0−0.91.22.31.2
Denmark
IBS0.30.80.20.70.5
BOP0.10.10.10.20.1
Difference0.20.70.10.50.4
Finland
IBS0.30.30.30.2
BOP−0.10.1
Difference0,40.30.20.2
France
IBS1.52.61.17.43.2
BOP−1.60.71.43.31.0
Difference3,11.9−0.34.12.2
Hong Kong
IBS1.00.12.75.82.4
BOP
Difference1.00.12.75.82,4
Italy
IBS−0.81.30.64.91.5
BOP
Difference−0.81.30.64.91.5
Japan
IBS2.51.81.716.45.6
BOP0.80.50.50.90.7
Difference1.71.31.215.54.9
Netherlands
IBS2.74.710.310.77.1
BOP10.86.27.03.94.5
Difference1.9−1.53.36.82.6
Norway
IBS−0.20.20.20.1
BOP−0.20.60.20.10.2
Difference−0.4−0.1−0.1
Panama
IBS4.11.9−2.23.91.9
BOP0.10.10.1
Difference4.11.9−2.33.81.9
Spain
IBS0.20.70.72.10.9
BOP
Difference0.20.70.72.10.9
Sweden
IBS0,50.50.21.40.7
BOP0.30.3−0.10.20.2
Difference0.20.20.31.20.5
Venezuela
IBS−0.80,10.90.50.2
BOP0.80.91.11.11.0
Difference−1.6−0.8−0.2−0.6−0.8
Totals for above countries
IBS17.613.515.368.328.7
BOP1.08.79.810.87.6
Difference16.64.85.557.521.1
United States
IBS26.222.718.96.418.6
BOP4.4−5.01.0−5.2−1.2
Difference21.827.717.911.619.8
Totals including United Slates
IBS43.836.234.274.747.2
BOP5.43.710.85.66.4
Difference38.432.523.469.140.9
IBS: Exchange-rate-adjusted net flows in the IMF’s international banking statistics.BOP: Counterpart flows in national balance of payments statistics.

Includes special financial institutions.

Table 5.Nonbank Liabilities to Foreign Banks: Comparison of IBS and National Balance of Payments Data, 1986-89 Major Countries with Comparable BOP Items(In billions of U.S. dollars; net increase (+))
Residence of nonbank19861987198819891986-89 average
Belgium-Luxembourg
IBS0.41.6−0.34.01.4
Of which portfolio−0.20.2−0.8−0.2
BOP0.10.30.10.60.3
Difference0.51.3−0.64.21.3
Canada
IBS2.03.2−1.44.72.1
Of which portfolio0.5−0.80.2
BOP−0.81.22.45.72.1
Difference2.81.5−3.0−1.2
Denmark
IBS0.73.32.41.82.1
Of which portfolio−0.20.3−0.8−0.2
BOP0.10.20.1
Difference0.93.03.11.62.2
Germany
IBS4.05.52.24.64.1
Of which portfolio2.64.04.1−0.22.6
BOP−4.80.20.21.3−0,8
Difference6.21.3−2.13.52.3
Italy
IBS0.11.74.610.84.3
Of which portfolio1.10.62.00.81.1
BOP0.73.94.812.25.4
Difference−1.7−2.8−2.2−2.2−2.2
Japan
IBS5.431.016.936.822.5
Of which portfolio2.93.61.24,02.9
BOP4.027.417.344.523.3
Difference− 1.5−1.6−11.7−3.7
Totals for above countries;
IBS12.646.324.462.736.5
Of which portfolio6.39.15.94.06.3
BOP−0.833.024.964.530.4
Difference7.14,2−6.4−5.8−0,2
United States
IBS24.723.336.634.229.7
Of which portfolio3.53.71.85.13.5
BOP−1.50.32.13.91.2
Difference22.719.332.725.225.0
Totals including United States
IBS37.369.661.096.966.2
Of which portfolio9.812.87.79.19.8
BOP−2.333.327.068.431.6
Difference29.823.526.319.424.8
Memo: United Kingdom1
IBS6.72.04.99.05.7
Of which portfolio1.31,81.90.31.3
BOP5.63.26.910.46.5
Difference−0.2−3.0−3.9−1.7−2.2
IBS: Exchange-rate-adjusted net flows in the IMF’s international banking statistics.“Of which portfolio”: net changes in long-term international securities held by reporting international banks that are included in the IBS totals for each country’s liabilities. Data are from Table 2.BOP: National balance of payments counterpart item included in other capital flows.Difference: IBS less portfolio investment included in IBS less balance of payments counterpart item in national statistics.

As in Table 3, the U.K. balance of payments flows are those calculated in IBS plus amounts for other financial institutions assumed not to be included in IBS nonbank amounts.

United States: A Closer Look

In the derived nonbank data in Tables 4 and Table 5, the United States shows the largest discrepancies with national balance of payments figures by far, almost as large as those for all the other countries combined. If U.S. compilers used the IBS figures in national balance of payments accounts, the change would reduce the U.S. errors and omissions item but would also increase the global capital account asymmetries and global errors and omissions.

The source of the U.S. problem is well known: private nonbank cross-border flows in “other” claims are measured through a U.S. Treasury reporting form that is returned by only a few hundred large corporations, and many transactions by individuals and businesses escape the reporting system entirely. Compilers want to broaden the nonbank reporting system, but that process can take several years. In the meantime, it is clear that nonbank transactions, except those handled by banks as custodians, are almost entirely missing from the U.S. balance of payments statistics.4

Private Nonbank Capital Flows

Table 6 presents the relation between IBS and U.S. balance of payments figures for stocks of nonbank capital at year-end 1989. The liability balances found in IBS are roughly eight times those recorded in the U.S. investment position figures; the IBS figures likewise show a large asset balance that is not present in the U.S. national statistics.

Table 6.External Positions of U.S. Non banks, Year-end 1989(In billions of U.S. dollars)
BOPIBS
Private nonbank financial assets18.11258.8
Nonbank liabilities to foreign banks
Private financial liabilities17.4
U.S. government securities held by
foreign banks9.3
Total liabilities26.7215.8
Net nonbank assets−8.643.0
Source: Survey of Current Business. March and June 1990, Tables 7 and 9.

The outside sources added by U.S. compilers in 1992 increase this total to about Í107 billion. See Survey of Current Business. June 1992,

The positive net asset balance of U.S. nonbanks recorded in the IBS statistics implies that net investment income of several billion dollars per year is missing from the U.S. BOP accounts; such an income adjustment is included in the IMF’s 1987 Report on the World Current Account Discrepancy.5 The comparison of U.S. national figures with IBS is more complicated, however, because the U.S. current account was in deep deficit during the 1980s, and the United States was a net borrower from the rest of the world. The IBS-derived flow estimates for U.S. nonbanks reflect those capital account developments more completely than the balance of payments; they show inflows of credit from foreign banks that are well above outflows. For 1986-89, the flow comparison appears in Table 7.6

Table 7.Capital Flows of U.S. Nonbanks, 1986-89(In billions of U.S. dollars; outflow (-))
19861987198819891986-89 average
U.S. balance of payments data1
Private nonbank sectors
Deposits abroad−4.45.0−1.05.21.2
Financial liabilities−1.50.32.13.91.2
U.S. government securities purchased by foreign banks0.2−0.8−1.51.8−0.1
Net nonbank flow2−5.74.5−0.410.92.3
IBS-derived net flows for nonbanks
Claims on foreign banks−26.2−22.7−18.9−6.4−18.6
Liabilities to foreign banks321.219.634.829.126.2
Net nonbank flow−5.0−3.115.922.77.6
Excess of IBS net flow over BOP net flow0.7−7.616.311.85.3
Effect on U.S. errors and omissions
Published errors and omissions115.8−6.7−9.318.44.6
Less: IBS excess of capital flows0.7−7.616.311.85.3
Less: Unrecorded investment income6.97.06.34.66.2
Equals: adjusted to IBS basis8.2−6.1−31.82.0−6.9

Survey of Current Business. June ¡991, pp. 62-64.

Net sum of private nonbank financial flows and foreign-bank net purchases of U.S. government securities. Maturity of the securities is not available but they are assumed to be short term in this table.

Excluding portfolio liabilities to international banks.

Table 7 indicates the effect that IBS-based estimates might have on U.S. errors and omissions if they were used in the U.S. balance of payments accounts. Substituting IBS figures generally increases net capital inflows (excess of IBS net flows over BOP net flows in Table 7). The IBS figures would also affect the current account, however, because the larger IBS net asset positions for U.S. nonbanks imply a larger net investment income for the United States than is presently captured in the balance of payments. A rough estimate of the income effect is reflected under “unrecorded investment income.” When the two effects—capital flow and income—are combined, U.S. errors and omissions take the form of the last line of the table. The 1986 and 1989 imbalances are much reduced, and the 1988 residual is very deep.7 Going beyond the table, for 1990, the U.S. discrepancy suggests large unrecorded inflows, and international banking statistics could reduce them by about one-half.

Interbank Comparisons

The validity of these IBS figures can be tested by comparing derived interbank components of IBS figures with U.S. counterparts. The Report on Capital Flows did not discuss derived interbank positions and flows, but they are part of both the BIS and the IBS systems. Most national data on cross-border activities of banks are reasonably complete, and differences between derived and direct measures of interbank activity usually arise from technical differences such as the definition of banks. The U.S. nonbank differences are so large, however, that a comparison of interbank differences for the United States might suggest whether the nonbank findings are misleading—for example, whether BIS reporters are attributing to the United States large amounts of other countries’ positions or unallocated residuals.

The IMF’s published IBS data do not include derived interbank stocks and flows. The BIS publication, International Banking and Financial Market Developments, shows them implicitly, however. The positions and flows of the 24 BIS reporting countries (other than the United States) Vis-à-vis banks in the United States can be gleaned from these published numbers. On the U.S. side, the Treasury Bulletin publishes positions reported by U.S. banks Vis-à-vis other countries, including BIS reporting countries. For recent years, it is possible to add up these U.S.-reported positions Vis-à-vis BIS reporters and compare them directly with the BIS- derived amounts for U.S. banks Vis-à-vis other BIS countries.

Such a comparison appears in Table 8 in the form of year-end stocks of assets and liabilities for the 1986-90 period. The table gives derived totals for U.S. interbank assets and liabilities Vis-à-vis other BIS countries as percentages of the U.S. Treasury’s measure of U.S. bank positions against banks in those same BIS countries. This is perhaps as specific a comparison as is possible between derived and national versions of international banking numbers. For 1986 and 1987, the results are very close for liabilities. (A 1986 Treasury version of U.S. interbank assets was not available.) In 1988, BIS coverage dropped severely, perhaps because of data processing problems of BIS reporters in offshore financial centers. The reduced coverage affected U.S. liabilities more than it did assets, but both sides show some instability in the relationship from 1987 to 1989. For assets, however, the two sources seem much closer over the entire 1987-90 period. The Treasury figures include bank custody assets, following the common assumption that BIS reporters include all custody claims on them as interbank positions. The close fit seems to support that assumption,8

Table 8.Comparative Data on Cross-Border Interbank Positions of U.S. Banks, 1986-90(In billions of U.S. dollars, unless otherwise noted)
19861987198819891990
Liabilities
U.S. data352.8432.3493.5555.9572.0
BIS derived349.4430.2447.3535.2546.7
BIS/U.S. (percent ratio)99.099.590.696.395.6
Assets
U.S. data392.1447,2498.1509.0
BIS derived393.8440.6509.7512.3
BIS/U.S. (percent ratio)100.498.5102.3100.6
Net interbank liability
U.S. data40.246.357.863.0
BIS derived36.46.725.534.4

This comparison of the interbank figures is only an indirect test of differences in the data for U.S. nonbank capital flows, which according to the IBS are on the scale of $25 billion a year. The interbank numbers in Table 8 give no indication, however, that BIS reporters are exaggerating U.S. nonbank positions by allocating irrelevant assets or liabilities to the United States. There is also no evidence that BIS reporters are attributing large positions to U.S. nonbanks that would be included in the banking totals of the U.S. accounts. Thus, consistency in the interbank figures should lend credibility to the IBS-derived figures for U.S. nonbanks.

The question remains why IBS stocks of U.S. nonbank assets and liabilities are so much larger than the U.S. counterpart data. Although not a new question, it has not yet been clearly answered. The asset difference may result, in part, from unrecorded accrued income earned on assets that were established abroad before 1980. In the IBS numbers, the stock of U.S. nonbank assets grew at an annual rate of 9 percent between 1981 and 1989, which is close to the rate that could be expected from reinvestment of income. The stock of U.S. nonbank liabilities grew at a 20 percent rate over this period, however, rising from 37 percent of assets in 1981 to 87 percent in 1989. Such borrowings are almost entirely missing from the U.S. balance of payments, and they are much larger than interest income can explain.

Data Comparisons for Other Countries

Table 9 and Table 10 summarize the results of annual comparisons of balance of payments and banking statistics for all countries not among the 24 surveyed in the earlier sections. These tables compare total asset and liability flows in the balance of payments data with the IBS-derived flows. The two tables include all countries for which the average IBS flow over the 1986-89 period exceeded the corresponding average balance of payments flow. The banking figures are not necessarily larger for each of the four years separately.

Table 9.Nonbank Claims on Foreign Banks, 1986-89: Countries Not Included in Tables 3 and 41(In millions of U.S. dollars; net increase (+))
Country19861987198819891986-89

average
Industrial countries
Greece
IBS353694631,824677
BOP
Difference353694631,824677
New Zealand
IBS4051,16640−1,210100
BOP40−110
Difference3651,16740−1,21091
Portugal
IBS288−6742248128
BOP−23−60−3522−24
Difference311−776226152
Switzerland
IBS−5812.9781413.4753.971
BOP1,0331,8331,7242,0101,650
Difference−1,6141,144−1,71111,4652,321
Group total
IBS4644,14755914,3374,877
BOP1,0501,7731,6902,0321,636
Difference−5862,374−1,13112,3053,241
Offshore financial centers
The Bahamas
IBS3,105—14803−975730
BOP
Difference3,105−14803−975730
Bahrain
IBS−155168197282123
BOP5475017
Difference−160165189232106
Bermuda
IBS2,539−1,1899081,019820
BOP
Difference2,539−1,1899081,019820
Cayman Islands
IBS2,7961,9374,5634,9363,558
BOP
Difference2,7961,9374,5634,9363,558
Gibraltar
IBS6052159521198
BOP
Difference6052159521198
Netherlands Antilles
IBS1,5112,619−3,535−966−93
BOP−24281
Difference1,5352,591−3,535−966−94
Singapore
IBS6941271,4022,2471,117
BOP606673533−30446
Difference87−5468692,277672
Group total
IBS10,5503,7014,4987,0646,453
BOP58870454120463
Difference9,9632,9973,9577,0445,990
Middle East
Iraq
IBS−163243−9011526
BOP− 1,730600220100−203
Difference1,567−357−31015229
Libya
IBS58147602−19197
BOP431−3,28037950−605
Difference−3733,427222−69802
Oman
IBS−38514727194−4
BOP−14118−63−10−49
Difference−2431299020445
Saudi Arabia2
IBS647−1163,4206,9422,723
BOP−4,319− 8,862−7,020−1,300−5,375
Difference4,9668,74510,4408,2428,098
Group total
IBS1574203,9577,2332,942
BOP−5,759−11,524−6,484−l,160−6,232
Difference5,91711,94410,4418,3939,174
Other developing countries
Argentina
IBS−1021,0791,4782,7181,293
BOP294−101−878454−58
Difference−3961,1802,3562,2641,351
Indonesia
IBS71379841,293457
BOP
Difference71379841,293457
Liberia
IBS6051,5512,2032,4701,707
BOP
Difference6051,5512,2032,4701,707
Peru
IBS157270420257276
BOP
Difference157270420257276
Other
IBS1,2102,3476,3427,2344,284
BOP1,230139793563681
Difference−202,2085,5496,6713,603
Group total
IBS1,9415,62610,52713,9728,017
BOP1,52438−851,017623
Difference4175,58810,61212,9557,394
IBS: Exchange-rate-adjusted net flows in the IMF’s international banking statistics. BOP: Total “other capital” assets of nonbanks.

Countries other than those in Tables 3 and 4 for which the 1986-89 average IBS flow for nonbanks is larger algebraically than the nonbank total asset flow in the 1990 Balance of Payments Statistics Yearbook.

For both IBS and balance of payments data, asset flows less liability flows.

Table 10.
Country19861987198819891986-89

average
United Arab Emirates
IBS−97−67192549144
BOP553−30010050101
Difference−6502339249944
Kuwait
IBS−150−255−433234− 151
BOP−34−413− 165−112−181
Difference−116158−26934630
Croup total
IBS304−536−23183894
BOP513−712−42−52−73
Difference−209176− 189891167
Other countries
China. People’s Republic
IBS1,6642,3003,1032,1512,305
BOP1,019157−308−51987
Difference6452,1433,4112.6702,217
South Africa
IBS−94141−39−355−323
BOP−854−589−1,571−595−902
Difference−876311,532240579
Peru
IBS180204190−4142
BOP−216−207−27−542−248
Difference396411217538390
Lebanon
IBS36802106899
BOP−420−400−200−100−280
Difference456480410168379
Romania
IBS−136−170−545−225−269
BOP−1,916−3,350−2,266−1,883
Difference−1361,7462,8052,0411,614
Jordan
IBS26237242274283
BOP152− 120−291
Difference262220542104282
Angola
IBS433−2430179
BOP
Difference433−2430179
Other
IBS−3651,2851291,083532
BOP−1.7123,468−6,781−5,768−2,299
Difference2,515−2,9054,4223,5491,894
Group total
IBS7004,1123,4702,7922,769
BOP−2,1836,655−12,357−9,819−5,924
Difference2,8833,44715,82712,6118,692
IBS: Exchange-rate-adjusted net flows in the IMF’s international banking statistics. BOP: Total “other liabilities” of nonbanks.

Annual Data for Offshore Financial Activity

A final group of tables presents annual data on offshore financial activity to support the summary tables that appear in Chapter 9 of the Report on Capital Flows. Table 11-Table 15 cover six offshore centers. Table 15 concludes with annual capital account adjustments and the implications of these adjustments for current account balances and for errors and omissions. The table thus corresponds to Table 52 in the Report on Capital Flows.

Table 11.Six Offshore Financial Centers: Balance of Payments from IMF Statistics, 1986-89(In millions of U.S. dollars; outflows (-))
Country19861987198819891986-89

average
Deposit money banks, total net claims
The Bahamas228415030
Bahrain−223−12−394−157
Cayman Islands
Netherlands Antilles−1143
Panama−7725727028120
Singapore−1,740−859−991−1,343−1,233
Total, six OFCs−2,019−592−1,074−1,265−1,238
Nonbank “other” net claims
The Bahamas2− 175203
Bahrain2232−33−4437
Cayman Islands
Netherlands Antilles3−55−13
Panama26−38−160−112—71
Singapore102−1.423−1,061−624−752
Total, six OFCs356−1.531−1,249−760−7%
Total “other” net claims
The Bahamas24−9467033
Bahrain−10−427−44−120
Cayman Islands
Netherlands Antilles2−41−10
Panama−51219110−8449
Singapore—1,638−2,282−2,052− 1,967−1,985
Total, six OFCs−1,663−2,123−2,323−2,025−2,034
Source: 1990 Balance of Payments Statistics Yearbook.
Table 12.Six Offshore Financial Centers: Net Flows in International Banking Statistics, 1986-89(In millions of U.S. dollars; outflows (-))
Country19861987198819891986-89

average
Interbank flows
The Bahamas−3,105—1,1071387,685903
Bahrain−2,449−2,486−5,770−2,994−3,425
Cayman Islands−14,1927,487−8,995−6,732−5,608
Netherlands Antilles666−667−1,1271,40569
Panama−3,2%5,654−3,0281E3−139
Singapore−5,2403003,4589,3691,972
Total, six OFCs−27,6169,181−15,3248,846−6,228
Bank flows vis-à-vis foreign nonbanks
The Bahamas3,0077202,812−6,590−13
Bahrain1,9622,8555,2223,1723,303
Cayman Islands5,858−6,200−1,252−2,136−933
Netherlands Antilles4866661,089−1,463195
Panama3,399−5,0423,9031,637974
Singapore4,902−8,277−5,420− 13,182−5,494
Total, six OFCs19,614−15,2786,354−18,562− 1,968
Total bank flows
The Bahamas−98−3872,9501,095890
Bahrain−487369−548178−122
Cayman Islands−8,3341,287−10,247−8,868−6,541
Netherlands Antilles1,152−38−58264
Panama1036128751,750835
Singapore−338−7,977−1.962−3,813−3,523
Total, six OFCs−8,002−6,097−8,970−9,716−8,196
Nonbank flows vis-à-vis foreign banks
The Bahamas764−1,337−1,8841,329−282
Bahrain225−254−9321−25
Cayman Islands−4,248944−731173−966
Netherlands Antilles−1,198−2,6932,6524,939925
Panama−3,026−2141,635−4.985−1,648
Singapore−1,138−247−1,025−2,121−1,133
Total, six OFCs−8,621−3,801554−644−3,128
Total bank and nonbank flows
The Bahamas666−1,7241,0662,424608
Bahrain−262115−641t99− 147
Cayman Islands− 12,5822,231−10,978−8,695−7,506
Netherlands Antilles−46−2,6942,6144.8811,189
Panama−2,9233982,510−3,235−813
Singapore−1,476−8,224−2,987−5,934−4,655
Total, six OFCs−16,623−9,898−8,416−10,360−11,324
Source: Exchange-rate-adjusted net flows in the IMF’s international banking statistics.
Table 13.Six Offshore Financial Centers: Excess of IBS Banking Flows over Balance of Payments, 1986-89(in millions of U.S. dollars; outflows (-))
Country19861987198819891986-89

average
Deposit money banks, total net flow
The Bahamas−120−3952,9091,045860
Bahrain−264381−15417835
Cayman Islands−8.3341,287−10.247−8.868−6.541
Netherlands Antilles1,153−15−38−58261
Panama1803556051.722716
Singapore1,402−7,118−971−2,470−2,289
Total, six OFCs−5,983−5,505−7,8%−8,451−6,959
Nonbank net “other” claims
The Bahamas762−1.320−1.8891.309−285
Bahrain2−256−6065−62
Cayman Islands−4,248944−731173−966
Netherlands Antilles−1,201−2,6382,6524,939938
Panama−3,052−1761,795−4.873−1,577
Singapore−1,2401,17636−1,497−381
Total, six OFCs−8,977−2,2701,803116−2,332
Total bank and nonbank flows
The Bahamas642−1,7151,0202,354575
Bahrain−262125−214243−27
Cayman Islands−12,5822,231−10,978−8,695−7,506
Netherlands Antilles−48−2.6532.6144.8811.199
Panama−2,8721792,400−3,151−861
Singapore162−5.942−935−3,%7−2,671
Total, six OFCs− 14,960−7,775−6,093−8,335—9,291
Source: Exchange-rate-adjusted net flows in the IMF’s international banking statistics.
Table 14.Six Offshore Financial Centers: Direct Investment and Portfolio Adjustments to Balance of Payments, 1986-89(In millions of U.S. dollars; outflows (-))
Country19861987198819891986-89

average
Reinvested earnings reported by partner countries1
The Bahamas−100−494−204−266−266
Bahrain−185−169−66−40−115
Cayman Islands355196−166340181
Netherlands Antilles5751,3185841,044880
Panama5594939431373
Singapore
Total, six OFCs1.2041,344¡571,5091,054
Other direct investment1
The Bahamas−83646924241773
Bahrain112−51− 12011514
Cayman Islands1,4583,711−581−2,324566
Netherlands Antilles3,4321,4631534,1242,293
Panama−178413−20272
Singapore
Total, six OFCs4,1655,6701072,1303,018
Portfolio securities2
The Bahamas−39−4−163−52
Bahrain−7428−12
Cayman Islands13395451,266430
Netherlands Antilles−5,700−5,500−3,300−1,300−3,950
Panama−7125446
Singapore642316216129
Total, six OFCs−5,662−5,023−2,96719−3,408
Short-term securities
Cayman Islands−661,102259
Netherlands Antilles359− 10963
Singapore−64−231−6−216−128
Total three OFCs−64−231287777192
Source: See Tables 11 and 12.

Amounts measured from “other party” statistics.

These figures are taken from line 6b of Tables 18 and 20 of the Report on Capital Flows.

Table 15.Six Offshore Financial Centers: Total Adjustments, 1986-89(In millions of U.S. dollars; outflows (-))
Country19861987198819891986-89

average
Combined adjustments1
The Bahamas−333−1,7441,0582,342331
Bahrain−335−169−372318−140
Cayman Islands−10,7566,533−11,746−8,311−6,070
Netherlands Antilles−1.741−5,3724108,640484
Panama−2,3146793,076−2,922−370
Singapore162−5,942−903−3,992−2,669
Total, six OFCs−15,317−6,015−8,509−3,900−8,435
Total income23,0004,0005,0008,0005,000
Reinvested earnings not reported by partner countries31.7962.6564.8436.4913.947
Errors and omissions413,5213,3593,666−2,5914,489
Source: See Table 13 and Table 14.

Sum of the adjustments for banking (Table 13) and the adjustments for direct investment and securities investment (Table 14).

From estimates underlying Table 3 of Part 2 of the 1990 Balance of Payments Statistics Yearbook. Earnings for OFC banks are based on cross-border asset and liability positions reported by OFC authorities and the market interest rates appropriate to each type of claim. Earnings for OFC nonbanks are based only on their claims on foreign banks as derived from IBS and used in Chapter 6 of the Report on Capital Flows. The estimate excludes earnings on nonbank positions Vis-à-vis foreign nonbanks.

Total income less the amounts from reinvested earnings in Table 14.

The net sum of combined adjustments and unreported retained earnings, with the sign reversed.

Table 16 and Table 17 show the annual adjustments that were developed for Hong Kong and for special financial institutions (SFIs) in the Netherlands. The tables include detail on types of capital flows that have been adjusted.

Table 16.Adjustments to Hong Kong Balance of Payments, 1986-89(In millions of U.S. dollars; outflow (-))
Type of capital flow19861987198819891986-89

average
Assets
Other direct investment46−700−464−690−452
Portfolio investment5.1009.9004002.8004.550
Other capital
Deposit money banks3,929−90,516−43,119−53,338−45,761
Private nonbanks−1,000−100−2,700−5,800−2,400
Reserves−974−2,058−2,867−2,302− 2,050
Total asset adjustments7,101−83,474−48,750−59,330−46,113
Liabilities
Other direct investment539−387531442281
Portfolio investment804−20618731204
Other capital
Short-term securities14310863
Resident official−54−14
Banks−3,19487,04841,60152,74344,550
Private nonbanks1,261−2,5234441,278115
Tola1 liability adjustments−59083,87842,90654,60245,199
Net flows
Other direct investment585−1,08767−248− 171
Portfolio investment5,9049,6945872,8314.754
Other capital
Short-term securities14310863
Resident official−54−14
Banks735−3,468−1,518−595−1,212
Private nonbank261−2,623−2,256−4,522−2,285
Reserves/LCFAR1−974−2,058−2,867−2,302−2,050
Total adjustments, net6,511404−5,844—4,728−914
Source: Calculations by the technical staff based on the Special Questionnaire on International Capital Flows and national and partner- country data.

Liabilities constituting foreign authorities’ reserves.

Table 17.Transactions of Special Financial Institutions According to Balance of Payments Categories, 1986-891(In millions of U.S. dollars; outflow(-))
Type of capital flow19861987198819891986-89

average
Assets
Other direct investment−10,416−24,379−30,309−33,248−24,588
Portfolio investment247−861−883−1,599−774
Other capital, private nonbank−2,161−1,524−937−3,930−2,138
Total adjustments to asset flows12,330−26,764−32,129−38,777−27,500
Liabilities
Other direct investment6,51416.38619,03618,39715,083
Portfolio investment5,1437.90313,30712,0199,593
Other capital, private nonbank2831.448−9075.7171,635
Total adjustments to liability flows11,94025,73731,43636,13326,312
Net flows
Other direct investment−3,902−7,993−11,273−14,851−9,505
Portfolio investment5,3907.04212,42410,4208,819
Other capital, private nonbank−1,878−76−1,8441,787−503
Total adjustments, net−390−1,027−693−2,644−1,189
Source: Information provided by Netherlands balance of payments compilers.

In the Balance of Payments Statistics Yearbook statement for the Netherlands, all cross-border transactions of SF is are combined in a net form as part of a single item in the capital account: “other capital” flows of private nonbanks. The Report on Capital Flows includes, in several chapters, adjustments to redistribute SF1 capital account transactions into the balance of payments categories from which they were removed for the Yearbook. This table presents the SFI adjustments to the Netherlands statement that are included in adjustment totals for industrial countries.

The redistribution of capital account flows in the table do not add to zero. The net amount in the bottom line is the current account balance (with opposite sign) of SFls Vis-à-vis the rest of the world. The SFI current account balance is also included in the Yearbook single capital account entry, but in the report it is transferred to the current account. It is included in the current account adjustments reflected in Table 6 of the Report on Capital Flows.

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