Morgan Stanley 2014 Annual Report Download - page 311

FINANCIAL DATA SUPPLEMENT (Unaudited)—(Continued)
statements of financial condition and (b) average balances that were reported on a net basis where certain criteria were met in accordance
with applicable offsetting guidance. In addition, securities-for-securities transactions in which the Company was the borrower were not
included in the average balances since they were not reported on the Company’s consolidated statements of financial condition.
(4) The approximated weighted average interest rate was calculated using (a) interest expense for all securities sold under repurchase
agreements and securities loaned transactions, whether or not such transactions were reported in the Company’s consolidated statements
of financial condition and (b) period-end balances that were reported on a net basis where certain criteria were met in accordance with
applicable offsetting guidance. In addition, securities-for-securities transactions in which the Company was the borrower were not
included in the period-end balances since they were not reported in the Company’s consolidated statements of financial condition.
Cross-border Outstandings.
Cross-border outstandings are based upon the Federal Financial Institutions Examination Council’s (“FFIEC”)
regulatory guidelines for reporting cross-border risk. Claims include cash, customer and other receivables,
securities purchased under agreements to resell, securities borrowed and cash trading instruments, but exclude
commitments. Securities purchased under agreements to resell and securities borrowed are presented based on
the domicile of the counterparty, without reduction for related securities collateral held. Effective December 31,
2013, the regulatory guidelines for reporting cross-border risk were updated and prospectively require the
reporting of, among other items, cross-border exposure to Non-banking financial institutions. For information
regarding the Company’s country risk exposure, see “Quantitative and Qualitative Disclosures about Market
Risk—Risk Management—Credit Risk—Country Risk Exposure” in Part II, Item 7A.
The following tables set forth cross-border outstandings for each country in which cross-border outstandings exceed
1% of the Company’s consolidated assets or 20% of the Company’s total capital, whichever is less, at December 31,
2014, December 31, 2013 and December 31, 2012, respectively, in accordance with the FFIEC guidelines:
At December 31, 2014
Country Banks Governments Other(1) Total
(dollars in millions)
United Kingdom ........................................ $ 8,514 $ 948 $60,025 $69,487
Cayman Islands ......................................... 144 — 43,472 43,616
Japan ................................................. 14,860 5,645 22,976 43,481
France ................................................. 18,838 218 7,940 26,996
Germany ............................................... 6,650 6,679 7,295 20,624
Singapore .............................................. 2,117 7,761 806 10,684
China ................................................. 1,738 3,259 5,610 10,607
Canada ................................................ 2,741 286 6,955 9,982
South Korea ............................................ 149 6,081 3,733 9,963
Ireland ................................................ 304 20 8,996 9,320
Netherlands ............................................ 910 — 7,399 8,309
At December 31, 2013
Country Banks Governments Other(1) Total
(dollars in millions)
United Kingdom ........................................ $11,874 $ 911 $57,594 $70,379
Japan ................................................. 27,251 3,622 26,426 57,299
Cayman Islands ......................................... 1 — 45,041 45,042
Germany ............................................... 8,844 10,312 10,613 29,769
France ................................................. 22,408 264 6,247 28,919
Canada ................................................ 2,988 2,012 7,108 12,108
Netherlands ............................................ 1,474 — 10,015 11,489
South Korea ............................................ 65 4,307 3,376 7,748
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