Cross-Border Outstanding

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DEFINITION

Any loan, receivable or payment extended to or owed by a person or entity outside the domestic borders of a bank's or company's home country. The outstanding amount may be in the company's domestic currency or it may be in another currency.

INVESTOPEDIA EXPLAINS

For example, if Bank ABC in the U.S. lends money to Company XYZ's subsidiary in Mexico, this would be considered a cross-border outstanding loan. Bankers' acceptances are usually cross-border transactions due to their role in foreign trade.


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