Updated May 23, 2019
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
and should supplement, not compete with, private capital.
provides financing and insurance to facilitate the export of
The Bank must consider proposed transactions’ potential
U.S. goods and services to support U.S. jobs, pursuant to a
U.S. economic and environmental impacts, among other
renewable, general statutory charter (Export-Import Bank
issues. The Bank, which views the amount of U.S. content
Act of 1945, as amended; 12 U.S.C. 635 et seq.). It aims to
in an export contract to be a proxy for U.S. jobs, reduces its
provide support when the private sector is unwilling or
level of support based on foreign content in an export
unable to finance alone; and/or to counter foreign ECA
contract. It also has U.S.-flag shipping requirements. The
financing. Recent Senate confirmations to positions on the
Bank must make available not less than 25% (up from 20%)
board of directors of the Ex-Im Bank restored its quorum
of its total authority to finance small business exports, and
and reinstated its full authority, including to approve larger
promote exports related to renewable energy and to sub-
deals again. Potential issues for the 116th Congress include
Saharan Africa (no quantitative target). It is generally
Senate consideration of additional board nominations and
barred from financing defense exports.
congressional consideration of reauthorizing Ex-Im Bank.
Products. The Bank is demand-driven, fee-based, and
Background
backed by the U.S. government’s full faith and credit. The
Bank’s products include the following:
Authorization. After allowing Ex-Im Bank’s general
Direct loans to foreign buyers of U.S. exports (interest
statutory authority to expire from July 1, 2015, until
rate based on parameters set in international rules).
December 4, 2015, Congress reauthorized the agency
Loan guarantees to lenders against default on loans of
through September 30, 2019 (P.L. 114-94). Congress also
foreign buyers of U.S. exports (lender usually sets rate).
lowered Ex-Im Bank’s portfolio “exposure cap” (total
Insurance to protect U.S. exporters or financial
authorized outstanding and undisbursed financing and
institutions against certain risks of exporting.
insurance) to $135 billion for FY2015-FY2019, subject to
Short-term, secured working capital loans and
conditions, and made reforms in areas such as risk
guarantees, usually to small business.
management, fraud controls, ethics, and the U.S. approach
to international negotiations on ECA disciplines.
In some cases, specific underwriting techniques may be
used, such as project, structured, and supply chain finance.
Leadership. By statute, a five-member board of directors,
representing both political parties, leads the Ex-Im Bank.
Activity. In FY2018, Ex-Im Bank authorized $3.3 billion
The Ex-Im Bank president and first vice president serve as
for 2,389 transactions, to support an estimated $6.8 billion
the board chairman and vice chairman, respectively. The
in U.S. exports and 33,000 U.S. jobs. It had about $40
board needs a quorum (at least three members) to conduct
billion in transactions pending board consideration. In
business, including approving medium- and long-term
FY2014, when fully operational, the Bank authorized $20.5
financing over $10 million, making policies, and delegating
billion for 3,746 transactions, to support an estimated $27.5
authority. Advisory and other committees provide support.
billion in U.S. exports and more than 164,000 U.S. jobs.
Figure 1. Ex-Im Bank Authorizations, FY1997-2018
On May 8, 2019, the Senate confirmed three nominations to
the board: the president/chairman, for a term expiring
January 20, 2021 (79-17 vote); a member, for a term
expiring January 20, 2023 (72-22); and another member, for
a term expiring January 20, 2021 (77-19). The Senate
action followed renewed calls by the Trump Administration
for the Senate to restore the Bank to full capacity and
subsequent cloture votes that limited debate. As for the two
other positions, one nomination (first vice president/vice
chairman, for a term expiring January 20, 2021) has been
referred to committee, and the other (board member, for a
term expiring January 20, 2023) is available for action by
the full Senate. Previously, for nearly four years, starting on
July 20, 2015, the board lacked a quorum, as terms expired
and no board nominations were confirmed. No action was
taken on board nominations submitted during the 114th
Source: CRS, based on data from Ex-Im Bank annual reports.
Congress. During the 115th Congress, some nominations
As in prior years, in FY2018, U.S. small businesses
were reported from committee, but none were confirmed.
accounted for most authorizations by number (91%), but a
Requirements. Ex-Im Bank financing may be extended
growing share of small businesses by dollar amount—66%
only where there is a “reasonable assurance of repayment”
in FY2018, up from 25% in FY2014.
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Export-Import Bank of the United States (Ex-Im Bank)
The Bank’s exposure dropped to $61 billion in FY2018,
OECD’s scope. Issues include China’s concessional export
compared to $112 billion in FY2014, due to repayments on
financing, which is outside of OECD rules on tied aid to
outstanding transactions exceeding new activity.
limit market distortions. Since 2012, an International
Working Group (United States, China, and other countries)
Funding. Ex-Im Bank’s revenues include interest, risk
has been negotiating separate export credit disciplines.
premia, and other fees that it charges for its support.
Revenues acquired in excess of forecasted losses are
Risk management. Based on its charter, Ex-Im Bank
recorded as offsetting collections. According to the Bank,
assesses and monitors credit and other risks of transactions,
since 2000, it has contributed to the Treasury $14.8 billion
maintains reserves against losses. It reported a default rate
after covering its administrative and program costs, and
of 0.482% as of December 2018 (sent quarterly to
other expenses. (This is on a cash basis, and different from
Congress). In FY2018, its reserves and allowances for total
the amount calculated on a budgetary basis.) With the prior
losses were $3.7 billion (6.4% of total outstanding balance).
lack of a quorum preventing the Bank from approving
larger deals, the Bank’s portfolio shrank and its offsetting
Issues for Congress
collections declined compared to administrative expenses.
Potential Senate consideration of additional nominations to
FY2019 appropriations for Ex-Im Bank were $5.7 million
the board and congressional consideration of Ex-Im Bank’s
for the Office of Inspector General (OIG) and a limit of
reauthorization present policy issues. Proponents argue that
$110.0 million for administrative expenses. The President’s
the Bank supports U.S. exports and jobs by filling gaps in
FY2020 budget requests $5 million for the OIG, a limit of
private sector financing and helping U.S. exporters compete
$95.5 million for administrative expenses, and a $106
against foreign ECA-backed companies. Critics argue that
million cancellation in unobligated funds for tied aid, which
the Bank crowds out private-sector activity, picks winners
is concessional financing for projects in developing
and losers, provides “corporate welfare,” and imposes
countries linked to procurement from the donor country.
taxpayer risks. Proponents hold that the Bank supports U.S.
Ex-Im Bank does not initiate tied aid for commercial
firms’ competitiveness in strategic sectors, particularly vis-
purposes; it aims to match foreign offers, which it has done
à-vis China. Critics oppose Ex-Im Bank’s financing of U.S.
infrequently in recent years (latest in 2011), in part due to
exports for purchase by Chinese and other state-owned
lack of transparency in foreign financing packages.
enterprises. The prior, limited operations of the Bank for
International context. The United States has led efforts to
nearly four years may affect policy debate; supporters argue
develop international disciplines on ECA activity. Ex-Im
that the lack of a quorum cost U.S. exports and jobs for
Bank abides by the Organization for Economic Cooperation
direct Ex-Im Bank users and their supply chains; critics
and Development (OECD) Arrangement on Officially
dispute notions of economic loss, holding that private-
Supported Export Credits. Applying to ECA financing with
sector financing was strong for major Bank users.
repayment terms of two years or more, the Arrangement
In a potential reauthorization debate, Members of Congress,
sets minimum interest rates, maximum repayment terms,
depending on their views, may seek:
and other terms and conditions, as well as has transparency
provisions. It aims to ensure a level playing field for ECA
a “clean” extension of Ex-Im Bank’s charter;
activity such that the price and quality of exports, not their
limited or extensive changes, such as to the Bank’s
financing terms, guide purchasing decisions. The World
exposure ceiling, scope, structure, conditions and limits
Trade Organization (WTO) Agreement on Subsidies and
on its activities, and risk management; or
Countervailing Measures has been interpreted to mean that
termination of the Bank’s functions.
export credit practices conforming with the Arrangement
Members may debate changing requirements for a quorum,
are not considered prohibited export subsidies.
or board member terms and succession rules. They also
Figure 2. Export Financing by Selected ECAs in 2017
may debate legislating or pressing the Administration to
modify the U.S. export financing approach 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.
Members also may revisit implementation of the 2015
reauthorization act. Ex-Im Bank implemented some
changes, but could not implement other changes requiring
board action while it lacked a quorum, including appointing
chief ethics and risk officers, raising the medium-term loan
program cap from $10 million to $25 million, and
increasing staff authority to approve small business export
financing from up to $10 million to $25 million.
Source: CRS, based on Ex-Im Bank 2017 Competitiveness Report data.
See CRS Report R43581, Export-Import Bank: Overview
Note: Data for new medium- and long-term official export credit
and Reauthorization Issues, by Shayerah Ilias Akhtar.
financing. Data subject to analytic assumptions and other limitations.
Shayerah Ilias Akhtar,
Over time, unregulated ECA financing has grown, due to
IF10017
non-OECD countries such as China operating ECAs and
OECD members providing financing outside of the
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Export-Import Bank of the United States (Ex-Im Bank)
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https://crsreports.congress.gov | IF10017 · VERSION 17 · UPDATED