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BANK OF AMERICA 2001 ANNUAL REPORT
63
International Exposure
Through its credit and market risk management activities, the Corporation has been devoting particular attention to those countries that have been
negatively impacted by global economic pressure in all three regions where the Corporation has exposure: Asia, Europe and Latin America.
In connection with its efforts to maintain a diversified portfolio, the Corporation limits its exposure to any one geographic region or country and
monitors this exposure on a continuous basis. Table Nineteen sets forth selected regional foreign exposure at December 31, 2001 and is based on the
FFIEC’s instructions for periodic reporting of foreign exposure. The countries selected represent those that are considered as having higher credit and
foreign exchange risk. At December 31, 2001, the Corporation’s total exposure to these select countries was $21.9 billion, a decrease of $8.4 billion
from December 31, 2000, primarily due to reductions in exposure to Japan and to most other countries in Asia, Europe and Latin America.
During 2001, Argentina began to experience significant economic turmoil and deterioration. In response to this and as part of the Corporation’s
ongoing, normal risk management process, the Corporation has reduced its credit exposure to Argentina. At December 31, 2001, the Corporation had
$745 million of credit and other exposure in Argentina. Of this amount, $478 million represented traditional credit exposure (loans, letters of credit, etc.)
predominantly to Argentine subsidiaries of foreign multinational companies. The Argentine government has defaulted on its bonds. At December 31, 2001,
the Corporation’s credit exposure related to Argentine government bonds was approximately $60 million. The Corporation continues to assess its credit
exposure to Argentina.
Table 19 Selected Regional Foreign Exposure
Derivatives Total Increase/
(Net Total Gross Binding (Decrease)
Loans Positive Securities/ Cross- Local Exposure from
and Loan Other Mark-to- Other border Country December 31, December 31,
(Dollars in millions)
Commitments Financing
(1)
Market) Investments Exposure
(2)
Exposure
(3)
2001 2000
Region/Country
Asia
China $ 79 $ 41 $ 16 $ 58 $ 194 $ 81 $275 $ (45)
Hong Kong 169 128 45 112 454 3,801 4,255 (309)
India 621 73 58 42 794 986 1,780 (429)
Indonesia 234 – 16 17 267 8 275 (120)
Japan 715 51 784 1,334 2,884 361 3,245 (3,849)
Korea (South) 274 518 21 39 852 358 1,210 (1,010)
Malaysia 36 4 1 20 61 285 346 (176)
Pakistan 13 6 – – 19 – 19 1
Philippines 169 19 11 43 242 90 332 (59)
Singapore 191 9 48 16 264 1,134 1,398 (76)
Taiwan 265 64 33 – 362 551 913 (216)
Thailand 39 12 28 24 103 285 388 (19)
Other 2 18 – – 20 100 120 (12)
Total $2,807 $ 943 $ 1,061 $ 1,705 $ 6,516 $8,040 $ 14,556 $ (6,319)
Central and Eastern Europe
Russian Federation $ – $ – $ – $ – $ – $ – $– $(2)
Turkey 82 23 1 21 127 – 127 (205)
Other 43 16 17 186 262 4 266 22
Total $ 125 $ 39 $ 18 $ 207 $ 389 $ 4 $393 $ (185)
Latin America
Argentina $ 361 $ 84 $ 53 $ 43 $ 541 $ 204 $745 $ (329)
Brazil 710 312 147 229 1,398 1,076 2,474 210
Chile 202 12 15 5 234 15 249 (731)
Colombia 113 8 12 6 139 – 139 (147)
Mexico 1,038 367 107 993 2,505 158 2,663 (773)
Venezuela 123 9 7 207 346 – 346 (133)
Other 160 61 8 99 328 – 328 (34)
Total $2,707 $ 853 $ 349 $ 1,582 $ 5,491 $ 1,453 $ 6,944 $ (1,937)
Total $5,639 $1,835 $1,428 $3,494 $12,396 $9,497 $21,893 $(8,441)
(1) Includes acceptances, standby letters of credit, commercial letters of credit, and formal guarantees.
(2) Cross-border exposure includes amounts payable to the Corporation by residents of countries other than the one in which the credit is booked, regardless of the currency in which the claim is
denominated, consistent with FFIEC reporting rules.
(3) Gross local country exposure includes amounts payable to the Corporation by residents of countries in which the credit is booked, regardless of the currency in which the claim is denominated.
Management does not net local funding or liabilities against local exposures as allowed by the FFIEC.