Updated September 27, 2018
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
Special financing that focuses on an industry (such as
finances and insures U.S. exports of goods and services to
aircraft and renewable energy) or a financing technique,
support U.S. jobs—aiming to do so when the private sector
(such as project, structured, and supply chain finance).
is unwilling or unable to finance alone at commercially
Ex-Im Bank also maintains a fund for tied aid (concessional
viable terms for exporting; and/or to counter financing
financing for projects in developing countries linked to
offered by foreign countries through their ECAs. A
procurement from the donor country). As the United States
renewable general statutory charter (Export-Import Bank
has viewed tied aid as market distorting, Ex-Im Bank does
Act of 1945, as amended) governs the agency. Ex-Im Bank
not initiate tied aid for commercial purposes, but aims to
currently is not fully operational because its Board of
match foreign offers through its tied aid fund.
Directors lacks a quorum due to vacancies. The agency’s
status has been contested because of policy debate over the
Requirements. Ex-Im Bank financing may only be
role of government in financing exports.
extended where there is a “reasonable assurance of
Background
repayment” and should supplement, not compete with,
private capital. The Bank must consider proposed
Authorization. After allowing Ex-Im Bank’s general
transactions’ potential U.S. economic and environmental
statutory authority to expire from July 1, 2015 through
impacts, among other issues. The Bank, which views the
December 4, 2015, Congress ultimately reauthorized the
amount of U.S. content in an export contract to be a proxy
agency through September 30, 2019 (P.L. 114-94).
for U.S. jobs, imposes limitations on the level of foreign
Congress also lowered Ex-Im Bank’s total portfolio
content that may be included in an export contract
“exposure cap” to $135 billion for FY2015-FY2019 subject
supported by its financing. It also has U.S. flag shipping
to conditions, and made reforms in areas such as risk
requirements. The Bank must make available not less than
management, fraud controls, ethics, and the U.S. approach
25% (up from 20%) of its total authority to finance small
to international negotiations on ECA disciplines.
business exports, and promote exports related to renewable
energy and to sub-Saharan Africa (no quantitative target). It
Leadership. By statute, a five-member Board of Directors,
is generally barred from financing defense exports.
drawing from both political parties, leads Ex-Im Bank. The
Bank’s President serves
Reported Activity. In FY2017, Ex-Im Bank authorized
as Chairman and the Vice President
$3.4 billion for 2,461 finance and insurance transactions, to
as Vice Chair of the Board. The President of the United
support an estimated $7.4 billion in U.S. exports and 40,000
States appoints members by and with the advice and
consent of the Senate. The Board’s responsibilities include
U.S. jobs. In contrast, in FY2014 when fully operational, it
authorized $20.5 billion for 3,746 transactions, to support
authorizing financing directly or via delegated authority.
an estimated $27.5 billion in U.S. exports and 164,000 U.S.
Advisory and other committees provide support.
jobs. As of June 6, 2018, the Bank had about $43 billion in
Since July 2015, the Board has lacked a quorum (at least
pending transactions awaiting Board consideration.
three members) and been unable to approve medium- and
Figure 1. Ex-Im Bank Authorizations, FY1997-2017
long-term transactions over $10 million. Ex-Im Bank
currently has one position filled—Chairman of the
Board/President of the Bank (acting). Four presidential
nominees to the Board (Chairman/President and three
additional Board members) that have been approved by the
Senate Banking Committee are pending before the Senate.
Products. Ex-Im Bank services are demand-driven, fee-
based, and backed by the full faith and credit of the U.S.
government. Products include:
Direct loans to foreign buyers of U.S. exports (interest
rate based on minimum official interest rates under
international rules), usually for capital-intensive exports;
Loan guarantees to lenders against default on loans of
foreign buyers of U.S. exports (lender usually sets rate);
Source: CRS, based on data from Ex-Im Bank annual reports.
Insurance to protect U.S. exporters or financial
institutions against certain risks of exporting;
As in prior years, in FY2017, U.S. small businesses
accounted for most authorizations by number (91%). The
Short-term, secured working capital loans and
growing share of small businesses by dollar amount—63%
guarantees, usually to small business; and
in FY2017, up from 25% in FY2014—is due, in part, to the
transaction size limit in the absence of a Board quorum.
https://crsreports.congress.gov
Export-Import Bank of the United States (Ex-Im Bank)
The Bank’s exposure (total authorized outstanding and
Risk management. Ex-Im Bank assesses and monitors
undisbursed financing and insurance) dropped to $73
credit and other risks of transactions. It reported a default
billion in FY2017, compared to $112 billion in FY2014.
rate of 0.439% as of June 2018 (sent quarterly to Congress).
This decline was due to repayments on outstanding
In FY2017, Ex-Im Bank’s reserves and allowances for total
transactions exceeding authorizations of new activity.
losses reached $3.7 billion (5.3% of total outstanding
balance). The 2015 reauthorization act requires Ex-Im Bank
Funding. Ex-Im Bank’s revenues include interest, risk
to build and hold loss reserves of no less than 5% of its total
premia, and other fees that it charges for its support.
disbursed and outstanding loans, guarantees, and insurance.
Revenues acquired in excess of forecasted losses are
recorded as offsetting collections. According to the Bank, it
Issues for Congress
contributed to the Treasury, after covering expenses, $284
General debate. With Ex-Im Bank’s authority extended
million in FY2016 and $0 in FY2017. (This is on a cash
until September 30, 2019, a key issue before the 116th
basis, and different from the amount calculated on a
Congress will be whether to renew Ex-Im Bank’s authority
budgetary basis.) The Bank’s portfolio has being shrinking
and if so, for how long and under what terms. Proponents
with the Board’s inability to approve transactions above
contend that the Bank supports U.S. exports and jobs by
$10 million, leading to a decline in offsetting collections
filling gaps in private sector financing and helping U.S.
compared to administrative expenses.
exporters compete against foreign companies backed by
FY2018 appropriations for Ex-Im Bank were $5.7 million
their ECAs. Critics contend that Ex-Im Bank crowds out
for the Office of Inspector General (OIG), a limit of $110.0
private sector activity, picks winners and losers, provides
million for administrative expenses, carryover funds of up
“corporate welfare,” and poses a risk to taxpayers.
to $10 million until September 30, 2021, and a rescission of
$10 million from FY2015 appropriated carryover funds.
Board vacancies. The general Ex-Im Bank reauthorization
President Trump’s FY2019 budget requests $4.8 million for
debate has been channeled into the current debate over
the OIG and a limit of $90 million for administrative
nominations to the Board. Congress may wish to examine
expenses, and to cancel $13.4 million in the tied aid fund.
the impact of the prolonged absence of a Board quorum on
the agency’s operations and ability to be self-sustaining.
International context. The United States has led efforts to
The lack of a quorum prevents U.S. companies from using
develop international disciplines on ECA activity. Ex-Im
Ex-Im Bank financing for transactions above $10 million
Bank abides by the Organization for Economic Cooperation
and may affect U.S. exports. Proposals to relax quorum
and Development (OECD) Arrangement on Officially
requirements were not in the final FY2018 appropriations
Supported Export Credits, which establishes guidelines on
act. Policymakers also may consider modifying Board
the terms and conditions for ECA financing (e.g., minimum
member terms and succession rules.
interest rates, risk fees, and maximum repayment terms).
The Arrangement’s intent is to ensure that price and quality,
Activity. The 2015 reauthorization act required reforms to
not financing terms, guide purchasing decisions. Over time,
Ex-Im Bank’s policies and operations. Issues include:
unregulated ECA financing has grown, due to non-OECD
How is Ex-Im Bank implementing the reforms?
countries such as China operating ECAs and OECD
What is the impact of the Bank’s statutory requirements
members providing financing not disciplined by the OECD.
and policies on stakeholder interests?
Since 2012, an International Working Group (United States,
What is the adequacy of its policies and operations on
China, and other countries) has been negotiating separate
risk management, ethics control, and fraud?
export credit disciplines.
Is Ex-Im Bank financing complementary to or
Figure 2. New Medium- and Long-Term Official
competing with the private sector?
Export Credit Volumes for Selected ECAs in 2017
International rules. The changing ECA landscape raises
questions about Ex-Im Bank’s competitiveness, including:
How effective is the OECD Arrangement? What
competitiveness challenges for U.S. exporters are
presented by export financing by China and other
countries that are not part of the OECD Arrangement?
What is the status of international ECA negotiations and
the Trump Administration’s approach to them?
What are other opportunities for addressing concerns
about unfair competition from foreign ECAs?
See CRS Report R43581, Export-Import Bank: Overview
and Reauthorization Issues, by Shayerah Ilias Akhtar.
Source: CRS, based on Ex-Im Bank 2017 Competitiveness Report data.
Notes: Data subject to analytic assumptions and other limitations.
Shayerah Ilias Akhtar, Specialist in International Trade
The World Trade Organization (WTO) Agreement on
and Finance
Subsidies and Countervailing Measures (SCM), which
IF10017
governs subsidies of non-agricultural goods, has been
interpreted to mean that export credit practices conforming
with the OECD Arrangement are not considered export
subsidies prohibited by the SCM Agreement.
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Export-Import Bank of the United States (Ex-Im Bank)
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https://crsreports.congress.gov | IF10017 · VERSION 13 · UPDATED