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Updated February 4, 2021
Export-Import Bank of the United States (Ex-Im Bank)
Ex-Im Bank, the official U.S. export credit agency (ECA),
loan guarantees to lenders against default on loans to
provides financing and insurance to facilitate the export of
foreign buyers of U.S. exports (lender usually sets rate);
U.S. goods and services to support U.S. jobs, pursuant to a
insurance to protect U.S. exporters or financial
renewable, general statutory charter (Export-Import Bank
institutions against export-related risks; and
Act of 1945, as amended; 12 U.S.C. §§635 et seq.). It aims
working capital guarantees of short-term loans.
to provide support for U.S. exports when the private sector
Underwriting techniques such as project, structured, and
is unwilling or unable to do so and/or to counter foreign
supply chain finance may be used in some cases. The 2019
ECA financing. The Bank is demand-driven, fee-based, and
reauthorization established an Ex-Im Bank Program on
backed by the U.S. government’s full faith and credit.
China and Transformational Exports (China program) to
Background
counter export subsidies by China or other designated
countries in specified high-technology sectors, such as 5G.
Authorization. The Further Consolidated Appropriations
Act, 2020 (P.L. 116-94, enacted December 20, 2019)
Activity. In FY2020, Ex-Im Bank approved $5.4 billion for
extended Ex-Im Bank’s general statutory authority for a
more than 2,000 authorizations of direct loans, loan
record seven years, through December 31, 2026. This
guarantees, and export credit insurance (see Figure 1), to
extension, which includes certain other changes, provides
support $10.8 billion in estimated U.S. export sales and an
new stability to an agency that had faced active policy
estimated 37,000 U.S. jobs. Transactions for small business
debate and constraints on its operating authority in prior
exporters accounted for 38.6% of authorizations by amount
years. Absent reauthorization, the Bank generally would not
and 88.6% by number. Between FY2014 and FY2018,
have been able to approve new transactions, but would have
authorization levels declined, largely due to the board’s
been able to continue managing its existing financial
inability to approve larger deals during a quorum lapse; the
obligations, and to perform certain other functions “for
number of authorizations stayed relatively level, as the
purposes of an orderly liquidation” (12 U.S.C. §635f).
Bank continued to be able to approve lower-level deals.
Leadership. By statute, a five-member board of directors,
Figure 1. Ex-Im Bank Authorizations, FY2000-2020
representing both political parties, leads the Bank. Members
are appointed by the President and confirmed by the Senate.
The Bank president and first vice president serve as the
board chairman and vice chairman, respectively. A quorum
of at least three members is required to conduct business,
including to approve transactions above a certain threshold
(previously $10 million, now generally $25 million after
board action in May 2019), make policies, and delegate
authority (e.g., to staff to approve transactions below the
threshold). The 2019 reauthorization provides for
establishing a temporary board if a quorum lapses for more
than 120 consecutive days of a U.S. presidential term.
Advisory and other committees support the board.
The board currently has an acting vice chairman and first
Source: CRS, based on data from Ex-Im Bank annual reports.
vice president, and two other directors. President Biden
In FY2020, the Bank’s total portfolio was $47 billion,
authorized a senior Bank official to serve in the acting
reflecting a decline in recent years from $112 billion in
capacity, and the term for one director was extended for up
FY2014, as repayments exceeded new activity. The 2019
to six more months pursuant to the charter—both actions
reauthorization sets the Bank’s total financing authority
effective January 20, 2021. Ex-Im Bank reports that these
(exposure cap) at $135 billion through FY2027.
actions enable the board to maintain a quorum, as the other
director’s term expires on January 20, 2023. Previous, May
Statutory and Policy Requirements. Ex-Im Bank
8, 2019, Senate confirmations reinstated a quorum that had
financing may be extended only where there is a
lapsed from July 20, 2015 to May 7, 2019, enabling the
“reasonable assurance of repayment” and should
board to exercise the full panoply of its statutory authorities
supplement, not compete with, private capital. The Bank
again and restoring the Bank to its “full financing capacity.”
must consider a proposed transaction’s potential economic
impact to U.S. industry and its environmental impact,
Products and Programs. Key Bank products include
among other factors. The Bank, which views the U.S.
direct loans to foreign buyers of U.S. exports (interest
rates are based on spreads set in international rules
content in an export contract to be a proxy for U.S. jobs,
above U.S. Treasury rates);
reduces its level of support based on foreign content in an
export contract; in December 2020, the board approved a
new content policy for financing under the China program
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Export-Import Bank of the United States (Ex-Im Bank)
in specified “transformational” export sectors. The Bank,
Working Group (IWG) has been in talks to establish new
among other things, has U.S.-flag shipping requirements.
export credit rules among major ECAs. In November 2020,
In specific U.S. export focuses, the Bank must
the United States, the European Union, and nine other IWG
make available not less than 30% of its total financing
members announced in a joint statement that they were
authority each year to support small business exports;
suspending temporarily their participation in the talks,
promote, and make available not less than 5% of its total noting “significantly divergent” positions in the IWG on
financing authority each year to support, renewable
commitments on “core issues.” Seven other IWG members,
energy exports;
including China and India, did not join the statement.
support environmentally beneficial exports (no
percentage requirement);
Ex-Im Bank Tied Aid Activity
support exports to sub-Saharan Africa (no percentage
Tied aid is concessional financing for projects in developing countries
requirement); and
linked to procurement from the donor country. U.S. policy has been for
have a general goal to reserve up to 20% of its total
Ex-Im Bank not to initiate, but rather to match specific foreign tied-aid
offers in certain cases where U.S. exporters are at a competitive
financing authority for the China program.
disadvantage. Ex-Im Bank last authorized a matching offer in 2010. New
The Bank also has reporting and notification requirements.
Ex-Im Bank tied aid procedures, jointly established with the Treasury in
Funding. Ex-Im Bank’s revenues include interest, risk
October 2020, reflect 2006 legislative changes to the charter, which,
among other things, al ow the Bank to offer tied aid preemptively to
premia, and other fees charged for its support. Revenues
counter potential foreign tied aid offers. The Bank stated that the new
acquired in excess of forecasted losses are recorded as
procedures will equip it to conduct its China program.
offsetting collections. The Bank reports contributing to the
Treasury, since 1992, a net of $9.5 billion after covering all
Figure 2. Export Financing by Selected ECAs in 2019
expenses, loan-loss reserves, and administrative costs. (This
is on a cash basis, and different from the amount calculated
on a budgetary basis.) Offsetting collections did not fully
cover program and administrative costs in FY2018-2020.
An FY2021 appropriations law (P.L. 116-94) provides Ex-
Im Bank with a limit of $110.0 million for administrative
expenses, and with $6.5 million for its Office of Inspector
General. As in FY2020, the FY2021 appropriations law
includes a prohibition against Ex-Im Bank using its funding
to support nuclear-related exports to Saudi Arabia, unless
the country meets certain nonproliferation requirements.
Risk management. Based on its charter, Ex-Im Bank
assesses and monitors credit and other risks of transactions,
and maintains reserves against losses. It reported a default
rate of 0.819% as of September 2020 (reported quarterly to
Congress). In FY2020, its reserves and allowances for total
losses were $2.9 billion (7.6% of total outstanding balance).
The latest reauthorization added an anti-fraud requirement
on the Bank’s consideration of applications for support.
Source: CRS, based on Ex-Im Bank 2019 Competitiveness Report.
International context. The United States has led efforts to
Note: Data are for new medium- and long-term official export credit
develop international rules for ECA activity. Ex-Im Bank
financing, and subject to analytic assumptions and other limitations.
abides by the Organisation for Economic Co-operation and
*Brazil abides by the Arrangement’s Aircraft Sector Understanding.
Development (OECD) Arrangement on Officially
Supported Export Credits, which aims to ensure a level
Policy Debate and Issues for Congress
playing field for exporter competition. Applying to ECA
Over the years, Ex-Im Bank has been the object of policy
financing with repayment terms of two years or more, the
debate. Supporters argue that the Bank fills gaps in private-
Arrangement includes limitations on financing terms and
sector financing for exports and helps U.S. firms compete
conditions, and transparency and other provisions,
against foreign ECA-backed firms, while managing risks
including on tied aid (see text box). Under an exception to
and advancing other U.S. policy goals. Critics argue that the
the World Trade Organization (WTO) rules, Arrangement-
Bank crowds out the private sector, picks winners and
compliant export credit practices are not treated as
losers, is corporate welfare, and imposes taxpayer risks.
prohibited export subsidies.
Issues before the 117th Congress may include:
Over time, unregulated ECA financing has grown; non-
Senate consideration of potential board nominations;
OECD countries operate ECAs and OECD members
the implementation of the 2019 reauthorization changes;
provide financing outside of the OECD rules. China’s ECA
activity under Ex-Im Bank’s new China program;
activity especially presents competitiveness concerns due to
Ex-Im Bank’s competitiveness in supporting U.S.
its size (see Figure 2), lack of transparency, and operation
exports balanced with its risk management; and
outside of OECD rules. China, with its intensive financing
the alignment of current international ECA rules with
for geopolitical aims, is “fundamentally changing the nature
U.S. policy goals and other potential options to address
of competition.” Foreign ECAs are taking more “flexible,
“unfair” competition from foreign ECAs.
innovative, and proactive” approaches. (See Ex-Im Bank
2019 Competitiveness Report). Since 2012, an International
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Export-Import Bank of the United States (Ex-Im Bank)
IF10017
Shayerah I. Akhtar, Specialist in International Trade and
Finance
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
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https://crsreports.congress.gov | IF10017 · VERSION 27 · UPDATED