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BankNet

BankNet
Resources for bankers

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

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