Memorandum Items: Contingent Liability on Acceptances Purchased for Foreign Correspondents
MCONLIAPFC • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.00
Year-over-Year Change
-99.26%
Date Range
4/18/1956 - 5/7/1975
Summary
This economic indicator tracks contingent liabilities on bank acceptances purchased from foreign correspondents, providing insight into international trade finance and banking risk exposure. It serves as a nuanced metric for understanding cross-border financial transactions and potential banking system vulnerabilities.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The trend represents a specialized financial instrument where banks purchase trade-related acceptances from foreign banking correspondents, creating a contingent liability on their balance sheets. Economists use this data to assess international trade dynamics, banking sector risk, and potential cross-border financial interconnectedness.
Methodology
Data is collected through regulatory reporting by financial institutions, tracking the total value of bank acceptances purchased with potential future payment obligations.
Historical Context
This metric is utilized by central banks and financial regulators to monitor international banking risks and assess potential systemic financial vulnerabilities.
Key Facts
- Represents financial obligations in international trade transactions
- Indicates potential banking sector exposure to foreign financial risks
- Provides insight into cross-border financial instrument usage
FAQs
Q: What are bank acceptances?
A: Bank acceptances are financial instruments where a bank guarantees payment for a transaction, typically in international trade. They represent a commitment to pay a specified amount at a future date.
Q: Why do banks purchase acceptances from foreign correspondents?
A: Banks purchase these acceptances to facilitate international trade, provide liquidity to foreign banking partners, and potentially generate fee income while managing calculated financial risks.
Q: How does this metric relate to global financial stability?
A: The trend helps economists and regulators assess potential cross-border financial risks and the interconnectedness of international banking systems.
Q: What does a change in this metric typically indicate?
A: Fluctuations can signal shifts in international trade volumes, changes in banking risk appetite, or broader economic and financial market conditions.
Q: How frequently is this data updated?
A: The data is typically reported periodically by financial institutions and compiled by regulatory bodies, with update frequencies varying based on reporting requirements.
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Citation
U.S. Federal Reserve, Memorandum Items: Contingent Liability on Acceptances Purchased for Foreign Correspondents [MCONLIAPFC], retrieved from FRED.
Last Checked: 8/1/2025