Updated May 7, 2019
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
Short-term, secured working capital loans and
provides financing and insurance to facilitate the export of
guarantees, usually to small business.
U.S. goods and services to support U.S. jobs, pursuant to a
In some cases, specific underwriting techniques may be
renewable, general statutory charter (Export-Import Bank
used, such as project, structured, and supply chain finance.
Act of 1945, as amended; 12 U.S.C. 635 et seq.). It aims to
provide support when the private sector is unwilling or
Requirements. Ex-Im Bank financing may be extended
unable to finance alone; and/or to counter financing offered
only where there is a “reasonable assurance of repayment”
by foreign countries through their ECAs. Ex-Im Bank,
and should supplement, not compete with, private capital.
although reauthorized until September 30, 2019, is not fully
The Bank must consider proposed transactions’ potential
operational; its Board of Directors lacks a quorum due to
U.S. economic and environmental impacts, among other
unfilled positions and cannot conduct business, including
issues. The Bank, which views the amount of U.S. content
considering medium- and long-term financing applications
in an export contract to be a proxy for U.S. jobs, reduces its
over $10 million. Potential issues for the 116th Congress
level of support based on foreign content in an export
include Senate consideration of presidential nominees to the
contract. It also has U.S. flag shipping requirements. The
Board, and whether to renew Ex-Im Bank’s authority, and
Bank must make available not less than 25% (up from 20%)
if so, for how long and under what terms.
of its total authority to finance small business exports, and
promote exports related to renewable energy and to sub-
Background
Saharan Africa (no quantitative target). It is generally
barred from financing defense exports.
Authorization. After allowing Ex-Im Bank’s general
statutory authority to expire from July 1, 2015, until
Activity. In FY2018, Ex-Im Bank authorized $3.3 billion
December 4, 2015, Congress reauthorized the agency
for 2,389 finance and insurance transactions, to support an
through September 30, 2019 (P.L. 114-94). Congress also
estimated $6.8 billion in U.S. exports and 33,000 U.S. jobs.
lowered Ex-Im Bank’s portfolio “exposure cap” (total
In contrast, when the Bank was fully operational in
authorized outstanding and undisbursed financing and
FY2014, it authorized $20.5 billion for 3,746 transactions,
insurance) to $135 billion for FY2015-FY2019, subject to
to support an estimated $27.5 billion in U.S. exports and
conditions, and made reforms in areas such as risk
33,000 U.S. jobs. As in prior years, in FY2018, U.S. small
management, fraud controls, ethics, and the U.S. approach
businesses accounted for most authorizations by number
to international negotiations on ECA disciplines.
(91%). The growing share of small businesses by dollar
amount—66% in FY2018, up from 25% in FY2014—is
Leadership and Board Nominations. By statute, a five-
due, in part, to the transaction size limit in the absence of a
member Board of Directors, representing both political
Board quorum. In FY2018, the Bank had about $40 billion
parties, leads Ex-Im Bank. The Bank’s President is
in transactions pending Board consideration.
Chairman of the Board, and the Bank’s First Vice President
is Vice Chairman of the Board. The Board’s duties include
Figure 1. Ex-Im Bank Authorizations, FY1997-2018
making policies and authorizing financing directly or via
delegated authority. Advisory and other committees provide
support. Since July 2015, the Board has lacked a quorum (at
least three members) to conduct business. Currently, it has
an acting Chairman. In the 116th Congress, the Senate
Banking Committee reported favorably four nominees. The
Senate may vote on three nominations, including for the
President/Chairman, following Senate votes to limit debate.
In the 115th Congress, “holds” in the Senate prevented
action on Board nominations reported from committee.
Products. Ex-Im Bank activity is demand-driven, fee-
based, and backed by the full faith and credit of the U.S.
government. Products include the following:
Direct loans to foreign buyers of U.S. exports (interest
Source: CRS, based on data from Ex-Im Bank annual reports.
rate based on parameters set in international rules).
The Bank’s exposure
Loan guarantees to lenders against default on loans of
dropped to $61 billion in FY2018,
foreign buyers of U.S. exports (lender usually sets rate).
compared to $112 billion in FY2014, due to repayments on
outstanding transactions exceeding new activity.
Insurance to protect U.S. exporters or financial
institutions against certain risks of exporting.
Funding. Ex-Im Bank’s revenues include interest, risk
premia, and other fees that it charges for its support.
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Export-Import Bank of the United States (Ex-Im Bank)
Revenues acquired in excess of forecasted losses are
Over time, unregulated ECA financing has grown, due to
recorded as offsetting collections. According to the Bank,
non-OECD countries such as China operating ECAs and
since 2000, it has contributed to the Treasury $14.8 billion
OECD members providing financing outside of the
after covering its administrative and program costs, and
OECD’s scope. Issues include China’s concessional export
other expenses. (This is on a cash basis, and different from
financing, which is outside of OECD rules on tied aid to
the amount calculated on a budgetary basis.) With its
limit market distortions. Since 2012, an International
inability to approve transactions above $10 million, the
Working Group (United States, China, and other countries)
Bank has seen a shrinking portfolio and a decline in its
has been negotiating separate export credit disciplines.
offsetting collections compared to administrative expenses.
FY2019 appropriations for Ex-Im Bank were $5.7 million
Issues for Congress
for the Office of Inspector General (OIG) and a limit of
Senate consideration of presidential nominees to Ex-Im
$110.0 million for administrative expenses. The President’s
Bank’s Board of Directors and potential legislative action
FY2020 budget requests $5 million for the OIG, a limit of
on the agency’s authorization status present economic and
$95.5 million for administrative expenses, and a $106
other policy issues for Congress. Proponents argue that the
million cancellation in unobligated funds for tied aid, which
Bank supports U.S. exports and jobs by filling gaps in
is concessional financing for projects in developing
private sector financing and helping U.S. exporters compete
countries linked to procurement from the donor country.
against foreign companies backed by their ECAs. Critics
Ex-Im Bank does not initiate tied aid for commercial
contend that it crowds out private sector activity, picks
purposes; it aims to match foreign offers, which it has done
winners and losers, provides “corporate welfare,” and poses
infrequently in recent years (latest in 2011), in part due to
a risk to taxpayers. Supporters hold that the Bank is
lack of transparency in foreign financing packages.
important in supporting U.S. firms’ competitiveness in
Risk management. Ex-Im Bank assesses and monitors
strategic sectors, particularly vis-à-vis China. Critics oppose
credit and other risks of transactions. It reported a default
Ex-Im Bank’s financing of U.S. exports for purchase by
rate of 0.482% as of December 2018 (sent quarterly to
Chinese and other state-owned enterprises.
Congress). In FY2018, Ex-Im Bank’s reserves and
Supporters argue that the lack of a quorum costs U.S.
allowances for total losses reached $3.7 billion (6.4% of
exports and jobs for direct Ex-Im Bank users and the
total outstanding balance). The Bank’s charter requires it
businesses in their supply chains. They observe that to
hold loss reserves of no less than 5% of its total disbursed
consider bids on export opportunities, foreign buyers may
and outstanding loans, guarantees, and insurance.
require an ECA financing offer, such as for some
International context. The United States has led efforts to
infrastructure projects or nuclear reactors. They also note
develop international disciplines on ECA activity. Ex-Im
that, in some cases, U.S. firms may secure financing from
Bank abides by the Organization for Economic Cooperation
foreign ECAs but must source abroad. Critics dispute
and Development (OECD) Arrangement on Officially
notions of economic loss, arguing that private sector
Supported Export Credits. Applying to ECA financing with
sources of financing have been strong for major users of
repayment terms of two years or more, the arrangement sets
Ex-Im Bank such as in the aircraft sector. Some critics
minimum interest rates, maximum repayment terms, and
prefer the Bank’s recent role in supporting smaller deals
other terms and conditions, as well as has transparency
primarily for small businesses, which presents less concern
provisions. It aims to ensure a level playing field for ECA
to them about crowding out private sector financing.
activity such that the price and quality of exports, not their
In a potential reauthorization debate, Members of Congress,
financing terms, guide purchasing decisions. The World
depending on their views, may seek
Trade Organization (WTO) Agreement on Subsidies and
a “clean” extension of Ex-Im Bank’s charter;
Countervailing Measures has been interpreted to mean that
export credit practices conforming with the arrangement are
limited changes such as to the Bank’s exposure ceiling;
not considered prohibited export subsidies.
major changes such as to the Bank’s scope, structure,
Figure 2.New Medium- and Long-Term Official
conditions and limits on its activities, and risk
Export Credit Volumes for Selected ECAs in 2017
management; or
termination of the Bank’s functions.
Given the prolonged absence of the quorum, Members may
debate proposals to modify Board quorum requirements or
Board member terms and succession rules. Members also
may consider legislating or pressing the Administration to
modify the U.S. approach to export financing to be more
competitive with countries operating outside of the scope of
OECD rules, or to pursue ongoing international
negotiations on new export credit rules more intensively.
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.
Shayerah Ilias Akhtar,
Note: Data subject to analytic assumptions and other limitations.
IF10017
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Export-Import Bank of the United States (Ex-Im Bank)
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https://crsreports.congress.gov | IF10017 · VERSION 15 · UPDATED