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Statistical Press Release – International banking statistics on a consolidated basis – 1st quarter of 2020

Today, Banco de Portugal publishes statistics in Table A.24 of the Statistical Bulletin and in BPstat on international consolidated banking statistics for the first quarter of 2020.

These statistics examine the international exposure of banks having their head office in Portugal from two different counterparty basis : (i) immediate — exposure to the countries of residence of agents that have directly signed an agreement with the bank and are immediately responsible before it; and (ii) ultimate — exposure to the countries of residence of the agents that guarantee compliance with the agreement instead of the entity that signed it, reflecting the fact that a third party ultimately guarantees compliance.

At the end of the first quarter of 2020, the immediate exposure of claims of Portuguese banks stood at €83 billion, a slight increase compared to the end of 2019.

The ultimate exposure of Portuguese banks was €83.8 billion, corresponding to a €0.2 billion decrease from the fourth quarter of 2019. Around 70% of these claims were located in the European Union, which represents a reduction of €2.7 billion (3 percentage points (pp)), when compared to the last quarter. Of this total, € -1.9 billion (2 pp) are mainly explained by the United Kingdom’s withdrawal from this aggregate.

The difference between the ultimate and immediate exposure (€0.8 billion) corresponds to a net risk transfer between Portugal and the rest of the world. Given that the ultimate exposure of foreign claims is higher than their immediate exposure, this means that some bank claims on Portuguese entities are guaranteed by non-resident entities (Chart 1).

The ultimate exposure vis-à-vis European Union Member States and the BRICS continued to exceed the immediate exposure (Chart 2).

Conversely, with regard to Portuguese-speaking African countries, the immediate exposure of Portuguese banks was higher than their ultimate exposure: part of their claims on entities residing in this group of countries was ultimately guaranteed by entities residing in other countries (Chart 2).

Next update: 14 Oct. 2020