Goldman Sachs 2013 Annual Report Download - page 227

Supplemental Financial Information
Cross-border Outstandings
Cross-border outstandings are based on the Federal
Financial Institutions Examination Council’s (FFIEC)
regulatory guidelines for reporting cross-border
information and represent the amounts that the firm may
not be able to obtain from a foreign country due to country-
specific events, including unfavorable economic and
political conditions, economic and social instability, and
changes in government policies.
Credit exposure represents the potential for loss due to the
default or deterioration in credit quality of a counterparty
or an issuer of securities or other instruments the firm holds
and is measured based on the potential loss in an event of
non-payment by a counterparty. Credit exposure is reduced
through the effect of risk mitigants, such as netting
agreements with counterparties that permit the firm to
offset receivables and payables with such counterparties or
obtaining collateral from counterparties. The tables below
do not include all the effects of such risk mitigants and do
not represent the firm’s credit exposure.
The tables below present cross-border outstandings and
commitments for each country in which cross-border
outstandings exceed 0.75% of consolidated assets in
accordance with the FFIEC guidelines.
Cross-border outstandings in the tables below include cash,
receivables, securities purchased under agreements to resell,
securities borrowed and cash financial instruments, but
exclude derivative instruments. Securities purchased under
agreements to resell and securities borrowed are presented
gross, without reduction for related securities collateral
held, based on the domicile of the counterparty. Margin
loans (included in receivables) are presented based on the
amount of collateral advanced by the counterparty.
Commitments in the table below primarily consist of
commitments to extend credit and forward starting resale
and securities borrowing agreements.
As of December 2013
in millions Banks Governments Other
Total cross-border
outstandings Commitments
Country
Cayman Islands $ 12 $ 1 $35,969 $35,982 $ 1,671
Japan 23,026 123 11,981 35,130 5,086
France 12,427 2,871 16,567 131,865 12,060
Germany 5,148 4,336 7,793 17,277 4,716
Spain 7,002 2,281 2,491 11,774 1,069
United Kingdom 2,688 217 7,321 10,226 19,014
Netherlands 1,785 540 5,786 8,111 1,962
As of December 2012
in millions Banks Governments Other Total cross-border outstandings Commitments
Country
Cayman Islands $ — $ — $39,283 $39,283 $ 1,088
France 6,991 2,370 23,161 132,522 18,846
Japan 16,679 19 8,908 25,606 9,635
Germany 4,012 10,976 7,912 22,900 4,887
Spain 3,790 4,237 1,816 9,843 473
Ireland 438 68 7,057 7,563 2176
United Kingdom 1,422 237 5,874 7,533 20,327
China 2,564 1,265 3,564 7,393 —
Brazil 1,383 3,704 2,280 7,367 865
Switzerland 3,706 230 3,133 7,069 1,305
1. Primarily comprised of secured lending transactions with a clearing house which are secured by collateral.
2. Primarily comprised of interests in and receivables from funds domiciled in Ireland, but whose underlying investments are primarily located outside of Ireland, and
secured lending transactions.
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