U.S. tax-deferred retirement plan that allows workers to contribute a percentage of their pre-tax salary for investment in stocks, bonds, or other securities. The employer may match all or pan of employees’ contributions.



U.S. tax-deferred retirement plan that allows workers to contribute a percentage of their pre-tax salary for investment in stocks, bonds, or other securities. The employer may match all or pan of employees’ contributions.

Accrued benefit

Amount of accumulated pension benefits of a pension plan member.

Accumulated benefit obligation (ABO)

Present value of pension benefits promised by a company to its employees, at a particular date and based on current salaries.

Actuarial gain/loss

An actuarial gain (loss) appears when actual experience is more (less) favorable than the actuary’s estimate.


A contract that provides an income for a specified period of time, such as a number of years or for life.

Asset/liability management (ALM)

The management of assets to ensure that liabilities are sufficiently covered by suitable assets at all times.

Balance sheet mismatch

A balance sheet is a financial statement showing a company’s assets, liabilities, and equity on a given date. Typically, a mismatch in a balance sheet implies that the maturities of the liabilities differ (are typically shorter) from those of the assets and/or that some liabilities are denominated in a foreign currency while the assets are not.

Banking soundness

The financial health of a single bank or of a country’s banking system.


Individual who is entitled to a pension benefit (including the pension plan member and dependants).

Book reserve scheme (also known as Direklzusage)

In Germany, accounting system whereby the actuarial value of future pension benefits appears as a liability, but is not offset by any specific provision on the sponsor company’s balance sheet.

Brady bonds

Bonds issued by emerging market countries as part of a restructuring of defaulted commercial bank loans. These bonds are named after former U.S. Treasury Secretary Nicholas Brady and the first bonds were issued in March of 1990.

Carry trade

A leveraged transaction in which borrowed funds are used to buy a security whose yield is expected to exceed die cost of the borrowed funds.

Cash securitization

The creation of securities from a pool of pre-existing assets and receivables that are placed under the legal control of investors through a special intermediary created for this purpose. This compares with a “synthetic” securitization where the generic securities are created out of derivative instruments.

Collective action clause

A clause in bond contracts that includes provisions allowing a qualified majority of lenders to amend key financial terms of the debt contract and bind a minority to accept these new terms.

Corporate governance

The governing relationships between all the stakeholders in a company—including the shareholders, directors, and management—as defined by the corporate charier, bylaws, formal policy, and rule of law.

Credit default swap

A financial contract under which an agent buys protection against credit risk for a periodic fee in return for a payment by the protection seller contingent on the occurrence of a credit/default event.

Credit risk

The risk that a counterparty to the insurer is unable or unwilling to meet its obligations causing a financial loss to the insurer.

Credit spreads

The spread between sovereign benchmark securities and other debt securities that are comparable in all respects except for credit quality (e.g., the difference between yields on U.S. Treasuries and those on single A-rated corporate bonds of a certain term to maturity).

Defined benefit plan

Pension plan in which benefits are determined by such factors as salary history and duration of employment. The sponsor company is responsible for the investment risk and portfolio management.

Defined contribution plan

Pension plan in which benefits are determined by returns on the plan’s investments. Beneficiaries bear the investment risk.

Dependency ratio

Ratio of pensioners to those of working age in a given population.


Financial contracts whose value derives from underlying securities prices, interest rates, foreign exchange rates, market indexes, or commodity prices.


The widespread domestic use of another country’s currency (typically the U.S. dollar) to perform the standard functions of money—that of a unit of account, medium of exchange, and store of value.


The acronym for the J.P. Morgan Emerging Market Bond Index that tracks the total returns for traded external debt instruments in the emerging markets.

Emerging markets

Developing countries’ financial markets that are less than fully developed, but are nonetheless broadly accessible to foreign investors.

Foreign direct investment

The acquisition abroad (i.e., outside the home country) of physical assets, such as plant and equipment, or of a controlling stake (usually greater than 10 percent of shareholdings).

Forward price-earnings ratio

The multiple of future expected earnings at which a stock sells. It is calculated by dividing the current stock price (adjusted for stock splits) by the estimated earnings per share for a future period (typically die next 12 months).

Funded pension plan

Pension plan that has accumulated dedicated assets to pay for the pension benefits.

Funding gap

The difference between the discounted value of accumulating future pension obligations and the present value of investment assets.

Funding ratio

Ratio of the amount of assets accumulated by a defined benefit pension plan to the sum of promised benefits.

Hedge Funds

Investment pools, typically organized as private partnerships and often resident offshore for tax and regulatory purposes. These funds face few restrictions on their portfolios and transactions. Consequently, they are free to use a variety of investment techniques—including short positions, transactions in derivatives, and leverage—to raise returns and cushion risk.


Offsetting an existing risk exposure by taking an opposite position in the same or a similar risk, for example, by buying derivatives contracts.

Hybrid pension plan

Retirement plan that has characteristics typical of both defined benefit and defined contribution plans.

Individual Retirement Account (IRA)

In the United States, tax-deferred retirement plan permitting all individuals to set aside a fraction of their wages (additional contributions are possible on a nondeductible basis).

Interest rate swaps

An agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one party will make fixed-rate and receive variable-rate interest payments.


The process of transferring funds from the ultimate source to the ultimate user. A financial institution, such as a bank, intermediates credit when it obtains money from depositors and relends it to borrowers.

Investment-grade issues (Sub-investment-grade issues)

A bond that is assigned a rating in the top four categories by commercial credit rating agencies. S&P classifies investment-grade bonds as RBB or higher, and Moody’s classifies investment-grade bonds as Baa or higher. (Subinvestment-grade bond issues are rated bonds that are below investment grade.)


The proportion of debt to equity. Leverage can be built up by borrowing (on-balance-sheet leverage, commonly measured by debt-to-equity ratios) or by using off-balance-sheet transactions.

Lump sum payment

Withdrawal of accumulated benefits all at once, as opposed to in regular installments.


The valuation of a position or portfolio by reference to the most recent price at which a financial instrument can be bought or sold in normal volumes. The mark-to-market value might equal the current market value—as opposed to historic accounting or hook value—or the present value of expected future cash flows.

Non performing loans

Loans that are in default or close to being in default (i.e., typically past due for 90 days or more).

Occupational pension scheme

Pension plan set tip and managed by a sponsor company for the benefit of its employees.

Offshore instruments

Securities issued outside of national boundaries.

Overfunded plan

Defined benefit pension plan in which assets accumulated are greater than the sum of promised benefits.

Pillar I

National pension systems are typically represented as a “multi-pillar” structure with the sources of retirement income derived from a mixture of government, employment, and individual savings, Pillar I refers to state-based retirement income, often a combination of universal entitlement and an earnings-related component. See Chapter III of the September 2004 GFSR for further details. (Note: Another classification scheme used in pension studies, particularly for emerging markets, was first developed at the World Bank, It describes Pillar 1 as “non-contributory state pensions,” Pillar 2 as “mandatory contributory,” and Pillar 3 as “Voluntary contributory”.)

Pillar II

Occupational pension funds, increasingly funded, organized at the workplace (e.g., defined benefit, defined contribution, and hybrid schemes).

Pillar III

Private saving plans and products for individuals, often tax advantaged.

Pair-wise correlations

A statistical measure of the degree to which the movements of two variables (e.g., asset returns) are related.

Pay-as-you-go basis (PAYG)

Arrangement under which benefits are paid out of revenue over each period, and no funding is made for future liabilities.

Pension benefit

Benefit paid to a participant (beneficiary) in a pension plan.

Pension contribution

Payment made to a pension plan by the sponsor company or by plan participants.

Primary market

The market where a newly issued security is first offered/sold to the public.

Private pension plan

Tension plan where a private entity receives pension contributions and administers the payment of pension benefits.

Projected benefit obligation (PBO)

Present value of pension benefits promised by a company to its employees at a particular date, and including assumption about future salary increases (i.e., assuming that the plan will not terminate in the foreseeable future).

Public pension plan

Pension plan where the general government administers the payment of pension benefits (e.g. Social Security and similar schemes).

Pm (call) option

A financial contract that gives the buyer the right, but not the obligation. to sell (buy) a financial instrument at a set price on or before a given date.


Insurance plated by an underwriter in another company to cut down the amount of die risk assumed under the original insurance.

Risk aversion

The degree to which an investor who, when laced with two investments with the same expected return but different risk, prefers the one with the lower risk. That is, it measures an investor’s aversion to uncertain outcomes or payoffs.

Secondary markets

Markets in which securities are traded alter they are initially offered/sold in the primary market.


Narrowly defined as the ability of an insurer to meet its obligations (liabilities) at any lime. In order to set a practicable definition, it is necessary to clarify the type of claims covered by the assets, e.g. already written business (run-off basis, break-up basis), or would future new business (going-concern basis) also to be considered. In addition, questions regarding the volume and the nature of an insurance company’s business, the appropriate time horizon to be adopted, and setting an acceptable probability of becoming insolvent are taken into consideration in assessing a company’s solvency.

Sponsor company

Company that designs, negotiates, and normally helps to administer an occupational plan for its employees and members.


See “credit spreads” above (the word credit is sometimes omitted). Other definitions include (1) the gap between bid and ask prices of a financial instrument; (2) the difference between the price at which an underwriter buys an issue from the issuer and the price at which the underwriter sells it to the public.

Syndicated loans

Large loans made jointly by a group of banks of one borrower. Usually, one lead bank lakes a small percentage of the loan and partitions (syndicates) the rest to other banks.

Tail events

The occurrence of large or extreme security price movements that, in terms of their probability of occurring, lie within the tail region of the distribution of possible price movements.


Private entity (person or organization) with a duly to receive, manage and disburse the assets of a plan.

Underfunded plan

Defined benefit pension plan in which assets accumulated are smaller than the sum of promised benefits.

Unfunded benefit liability

Amount of promised pension benefits that exceeds a plan’s assets.


Right of an employee, on termination of employment, to obtain part or all of his accrued benefits.

With-profits policies

The insurance company guarantees to pay an agreed amount at a specific time in the future, and may increase this guaranteed amount through bonus payments. In effect, the policy holders are participating in the profits of the life insurance company.

Yield curve

A chart that plots the yield to maturity at a specific point in time for debt securities having equal credit risk but different maturity dates.

Annex: Summing Up by the Acting Chair

The following remarks by the Acting Chair were made at the conclusion of the Executive Board’s discussion of the Global Financial Stability Report on March 18, 2005.

Executive Directors welcomed the further strengthening of the financial system in the past six months, supported by solid global economic growth and continued improvements in balance sheets of the corporate, financial, and household sectors in many countries. They also welcomed ongoing improvements in the fundamentals of many emerging market countries. Prospects for continued financial stability are underpinned by the still favorable outlook for the world economy, and by the growing sophistication in financial markets that has helped spread risk. Nonetheless, Directors noted that currently low long-term interest rates and credit spreads could mask underlying vulnerabilities and pose risks of market reversals, especially for less credit-worthy sovereigns and corporations. While these risks are generally expected to be manageable given the strength of financial institutions, Directors stressed the need for continued vigilant monitoring and timely policy measures.

Global Financial Market Surveillance

Directors noted that markets have remained orderly through the ongoing interest rate tightening cycle in mature markets, facilitated by the increasingly transparent communication strategies of major central banks. Still abundant global liquidity and improving credit quality have kept mature market bond yields and financial market volatility low. Other factors that have contributed to relatively low long-term bond yields include expectations that inflation will remain under control, low corporate demand for net credit, and growing demand for long-term bonds by pension funds and life insurance companies. More generally, low short-term interest rates have encouraged investors to use leverage and move out along the risk spectrum in their quest for yield, buoying asset valuations and compressing credit spreads.

Directors noted that the corporate balance sheet improvements in mature markets and the quest for yield have encouraged investors to increase their exposure to credit risk. This has contributed to falling corporate bond spreads, and possibly to reduced investor discrimination. Directors noted the growth of credit derivatives markets, which facilitate the trading and hedging of credit risks. At the same time, many Directors acknowledged that the derivatives markets’ expansion may expose some investors to the possibility of leveraged losses, which could be amplified by potential liquidity problems. Furthermore, risk management models designed to deal with these new and more complex financial instruments may have yet to be put to a significant live test. Several Directors also called for increased disclosure and continued monitoring of hedge fund activities. Directors appreciated the GFSR’s continued attention to developments in energy markets, and supported its call for more timely and reliable data on global demand and supply conditions.

Directors observed that, along with improvements in many emerging market countries’ fundamentals, abundant liquidity and quest for yield have been driving factors in recent developments in emerging financial markets. Spreads on emerging market debt have narrowed to near record lows and investors’ appetite for emerging market financial assets has grown considerably. Ongoing, healthy market developments include the expansion of the investor base for emerging markets to include a more diverse universe of long-term investors; the increasing diversification of investor portfolios into local emerging markets; the extension of local government yield curves in a number of countries; and the inclusion of more local currency sovereign bonds in major benchmark global bond indices.

Directors generally expected financing prospects for emerging markets to remain solid, underpinned by benign financial market conditions and further improvements in the credit quality of emerging market borrowers. Most emerging market sovereign borrowers have used this period well, undertaking substantial prefinancing of their external financing needs, conducting debt management operations to improve the resilience of their balance sheets, and, in a couple of instances, issuing local currency bonds in global markets. Directors also welcomed broad-based improvements in the financial health of the domestic banking sector in emerging market countries, while encouraging authorities to continue structural reforms aimed at increasing their resiliency to potential shocks.

Turning to risks in the current environment, Directors noted that the long period of high liquidity and low volatility may have led to a sense of complacency on the part of some investors, and that compression of inflation and risk premia leaves little room for error in terms of asset valuations. Against this backdrop, the risk that long-term market rates might rise abruptly requires continued vigilance. While no single event may trigger such a rise, most Directors highlighted concerns about the possibility of a combination or correlation of events, noting the potential risks of a disorderly adjustment of global imbalances, possibly associated with a diversification of international investors away from dollar holdings, as well as the possibility of an unanticipated increase in inflation, particularly related to oil and other commodity prices.

Directors considered a number of steps to enhance global financial stability and mitigate potential risks. In particular, they reiterated their call for cooperative efforts and credible policy measures to enhance the market’s confidence that global imbalances will be reduced in an orderly manner. At a microeconomic level, supervisors and regulators should be vigilant to the risk profile of financial intermediaries, and their exposure to abrupt market price shocks. Emerging market country authorities should continue to adopt prudent macroeconomic policies that reduce financing needs, while taking advantage of the current benign conditions to fulfill their external financing requirements, improve the structure of their debt, and press ahead with efforts to develop local financial markets. In addition, structural reforms to enhance growth prospects remain a critical avenue for reducing debt-to-GDP ratios to more manageable levels.

Household Balance Sheets

Directors welcomed the staff’s study on the changing risk profile of the household sector resulting from the transfer, reallocation, and improved management of financial risks by banks, insurance companies, and pension funds. While households always have been the ultimate bearers of financial risks, through a variety of channels, these risks traditionally have been intermediated by governments and private financial and nonfinancial institutions. Directors supported the view that policies designed to improve the financial stability of systemically or otherwise important institutions should also consider the consequent flow of risks to households and their ability to absorb or manage such risks.

Directors observed that trends in the evolution of household balance sheets in different jurisdictions have benefited households in various ways, including through a significant growth in net worth relative to income, boosted by capital gains. At the same time, the shift away from bank and savings deposits to more market-sensitive assets has also exposed them to greater market risk. Directors considered that planned reforms of public and private retirement benefits may imply that households will have even more responsibility going forward in managing their financial affairs. Such reforms have brought benefits, such as the portability of defined contribution or hybrid pension plans. While they have reduced some risks, these reforms have also increased the direct exposure of households to investment and market risks, and possibly more challenging, longevity risk.

Directors observed that as more households rely primarily on defined contribution and other self-directed pension plans, there may be scope for incentives to educate households, and thereby increase their ability to manage these risks and to obtain better financial advice. These measures could also include developing new instruments to help households realize more easily long-term savings and make resources available for retirement. Several Directors highlighted the role of consistent government policies, including stable tax policies, in encouraging long-term savings strategies. A crucial element of household saving and investment planning is the uncertainty of life expectancy, and the ability to convert long-term savings into a dependable income stream. Directors suggested, in this context, that the issuance of long-dated, index-linked, and longevity bonds could facilitate the management of longer-term investments and obligations and the supply of annuity products.

Directors generally saw a role for governments in developing communication strategies to inform households about their retirement challenges, and in coordinating with the private sector to provide financial education. They welcomed the initiatives undertaken by organizations such as the OECD and several national authorities to foster the financial education of households. Directors noted the importance of increased efforts to improve the collection, timeliness, and comparability of data on the household sector for assessing the flow of financial risk through the financial system, and in particular the risk profile of households. More generally, they looked forward to keeping the systemic and policy implications of the flow of risks to households under review.

Corporate Finance in Emerging Markets

Directors welcomed the detailed study on corporate finance in emerging markets. They observed that it is unclear whether the decline in domestic bank lending to corporations (outside China and India) is a result of reduced external financing needs or constraints on the sources of funding. Nevertheless, Directors called for continued efforts by emerging markets to improve their institutional frameworks to facilitate corporates’ access to equity finance on appropriate terms. Directors saw a need to narrow gaps in the implementation and enforcement of widely accepted principles of corporate governance, disclosure and transparency, while recognizing the need to take into account country-specific legal and institutional circumstances as well as the stage of market development. Several Directors saw merit in integrating the analysis and discussion on corporate finance and bank disintermediation across mature and emerging markets, as common trends are likely in an integrated global economy.

Directors recognized the importance of assessing corporate sector financial fragilities, given the increased importance of corporates relative to sovereigns in international markets and the potential risks should market conditions become less benign. They underscored the desirability of an integrated approach to corporate sector vulnerability that would account for interactions between interest rate, foreign exchange and credit risks, as well as linkages with the financial and government sectors. While the effort to develop new databases was welcomed, some Directors nevertheless cautioned that care should be taken in drawing inferences from dated and incomplete data Some Directors encouraged the development of hedging instruments to address exposures to foreign currency risk, and also noted the important role of financial intermediaries, and their regulators, in monitoring balance sheet mismatches in the corporate sector.

Statistical Appendix

This statistical appendix presents data on financial developments in key financial centers and emerging markets. It is designed to complement the analysis in the text by providing additional data that describe key aspects of financial market developments. These data are derived from a number of sources external to the IMF, including banks, commercial data providers, and official sources, and are presented for information purposes only; the IMF does not, however, guarantee the accuracy of the data from external sources.

Presenting financial market data in one location and in a fixed set of tables and charts, in this and future issues of the GFSR, is intended to give the reader an overview of developments in global financial markets. Unless otherwise noted, the statistical appendix reflects information available up to February 16, 2005.

Mirroring the structure of the chapters of the report, the appendix presents data separately for key financial centers and emerging market countries. Specifically, it is organized into three sections:

  • Figures 1-14 and Tables 1-9 contain information on market developments in key financial centers. This includes data on global capital flows, and on markets for foreign exchange, bonds, equities, and derivatives, as well as sectoral balance sheet data for the United States, Japan, and Europe.

  • Figures 15 and 16, and Tables 10-21 present information on financial developments in emerging markets, including data on equity, foreign exchange, and bond markets, as well as data on emerging market financing flows.

  • Tables 22-28 report key financial soundness indicators for selected countries, including bank profitability, asset quality, and capital adequacy.

List of Tables and Figures

Emerging Markets
Financial Soundness indicators
Figure 1.
Figure 1.

Global Capital Flows: Sources and Uses of Global Capital in 2003

Source: International Monetary Fund, World Economic Outlook database as of March 11, 2005.1As measured by countries’ current account surplus (assuming errors and omissions are part of the capital and financial accounts).2Other countries include all countries with shares of total surplus less than 2. 3 percent.3As measured by countries’ current account deficit (assuming errors and omissions are part of the capital and financial accounts).4Other countries include all countries with shares of total deficit less than 1. 2 percent.
Figure 2.
Figure 2.

Exchange Rates: Selected Major Industrial Countries

Sources: Bloomberg L. P.; and the IMF Competitive Indicators System.Note: In each panel, the effective and bilateral exchange rates are scaled so that an upward movement implies an appreciation of the respective local currency.1Local currency units per U. S. dollar except for the euro area and the United Kingdom, for which data are shown as U. S. dollars per local currency.21995 = 100; constructed using 1989-91 trade weights.
Figure 3.
Figure 3.

United States: Yields on Corporate and Treasury Bonds

(Weekly data)

Sources: Bloomberg L. P.; and Merrill Lynch.
Figure 4.
Figure 4.

Selected Spreads

(In basis points)

Sources: Bloomberg L. P.: and Merrill Lynch.1Spread over 10-year U.S. treasury bond: weekly data.2Spread between yields on three-month U. S. treasury repo and on three-month U. S. treasury bill.3Spread between yields on 90-day investment-grade commercial paper and on three-month U. S. treasury bill.4Spread between three-month U. S. dollar LIBOR and yield on three-month U. S. treasury bill.5Spread over 10-year government bond.
Figure 5.
Figure 5.

Nonfinancial Corporate Credit Spreads

(In basis points)

Source: Merrill Lynch.
Figure 6.
Figure 6.

Equity Markets: Price Indexes

(January 1, 1990 = 100; weekly data)

Source: Datastream.
Figure 7.
Figure 7.

Implied and Historical Volatility in Equity Markets

Sources: Bloomberg L.P.; and IMF staff estimates.Note: Implied volatility is a measure of the equity price variability implied by the market prices of call options on equity futures. Historical volatility is calculated as a rolling 100-day annualized standard deviation of equity price changes. Volatilities are expressed in percent rate of change.1VIX is the Chicago Board Options Exchange’s volatility index. This index is calculated by taking a weighted average of implied volatility for the eight S&P 500 calls and puts.
Figure 8.
Figure 8.

Historical Volatility of Government Bond Yields and Bond Returns for Selected Countries1

Sources: Bloomberg L.P.; and Datastream.1 Volatility calculated as a rolling 100-day annualized standard deviation of changes in yield and returns on 10-year government bonds. Returns are based on 10-plus year government bond indexes.
Figure 9.
Figure 9.

Twelve-Month Forward Price/Earnings Ratios

Sources: I/B/E/S.
Figure 10.
Figure 10.

Flows into U.S.-Based Equity Funds

Sources: AMG Data Services; Investment Company Institute; and Datastream.1In billions of U.S. dollars.
Figure 11.
Figure 11.

United States: Corporate Bond Market

Sources: Board of Governors of the Federal Reserve System; and Bloomberg L.P.1Spread against yield on 10-year U.S. government bonds.
Figure 12.
Figure 12.

Europe: Corporate Bond Market1

Sources: Bondware; and Datastream.1 Nonfinancial corporate bonds.2Spread between yields on a Merrill Lynch High-Yield European Issuers Index bond and a 10-year German government benchmark bond.
Figure 13.
Figure 13.

United States: Commercial Paper Market1

Source: Board of Governors of the Federal Reserve System.1 Nonfinancial commercial paper.2Difference between 30-day A2/P2 and AA commercial paper.
Figure 14.
Figure 14.

United States: Asset-Backed Securities

Sources: Merrill Lynch; Datastream; and the Bond Market Association.1Merrill Lynch AAA Asset-Backed Master Index (fixed rate) option-adjusted spread.2Collateralized bond/debt obligations.
Table 1.

Global Capital Flows: Inflows and Outflows1

(In billions of U.S. dollars)

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Sources: International Monetary Fund, World Economic Outlook database as of March 11, 2005, and International Financial Statistics. 1The total net capital flows are the sum of direct investment, portfolio investment, other investment flows, and reserve assets.

“Other investment” includes bank loans and deposits.

This aggregate comprises the group of Other Emerging Market and Developing Countries defined in the World Economic Outlook, together with Hong Kong SAR, Israel, Korea, Singapore, and Taiwan Province of China.

Table 2.

Global Capital Flows: Amounts Outstanding and Net Issues of International Debt Securities by Currency of Issue and Announced International Syndicated Credit Facilities by Nationality of Borrower

(In billions of U.S. dollars)

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Source: Bank for International Settlements.

For 1997-98, the euro includes euro area currencies.

Table 3.

Selected Indicators on the Size of the Capital Markets, 2003

(In billions of U.S. dollars unless noted otherwise)

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Sources: World Federation of Exchanges; Bank for International Settlements; International Monetary Fund, International Financial Statistics (IFS) and World Economic Outlook database as of March 11, 2005; and ©2003 Bureau van Dijk Electronic Publishing-Bankscope.

Data are from the IFS. For the United Kingdom, excludes the assets of the Bank of England.

Assets of commercial banks.

Sum of the stock market capitalization, debt securities, and bank assets.

This aggregate comprises the group of Other Emerging Market and Developing Countries defined in the World Economic Outlook, together with Hong Kong SAR, Israel, Korea, Singapore, and Taiwan Province of China.

Table 4.

Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts1

(In billions of U.S. dollars)

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Source: Bank for International Settlements.

All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with nonreporting counterparties.

Single-currency contracts only.

Adjustments for double-counting are estimated.

Gross market values after taking into account legally enforceable bilateral netting agreements.

Table 5.

Global Over-the-Counter Derivatives Markets: Notional Amounts and Gross Market Values of Outstanding Contracts by Counterparty, Remaining Maturity, and Currency1

(In billions of U.S. dollars)

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Source: Bank for International Settlements.

All figures are adjusted for double-counting. Notional amounts outstanding have been adjusted by halving positions vis-à-vis other reporting dealers. Gross market values have been calculated as the sum of the total gross positive market value of contracts and the absolute value of the gross negative market value of contracts with nonreporting counterparties.

Residual maturity.

Counting both currency sides of each foreign exchange transaction means that the currency breakdown sums to twice the aggregate.

Single-currency contracts only.

Adjustments for double-counting are estimated.

Table 6.

Exchange-Traded Derivative Financial Instruments: Notional Principal Amounts Outstanding and Annual Turnover

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Source: Bank for International Settlements.