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BankNet

BankNet
More resources for national banks

Country Risk

Country risk refers to the economic, social, and political conditions and events in a foreign country that may adversely affect a financial institution’s operations. Banks must institute adequate systems and controls to manage the inherent risks in their international activities.

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Country Risk Management (Comptroller’s Handbook, March 2008)
Provides an overview of country risk, appropriate procedures, and examiner guidance

Trade Finance (Comptroller’s Handbook, November 1998)
Contains background and procedural guidance for examiners who evaluate trade finance operations

References
BC = Banking Circular
OCC=Bulletin

Accounting for Loan Swaps (BC 200, May 1985)
Provides guidance in accounting for loan swaps, principally of foreign borrowers

Country Risk (OCC 2002-10, March 2002), Interagency Guidance (February 2002)
Addresses sound risk management practices for country risk and describes the elements of an effective risk management process