Cross-Border Outstanding

AAA

DEFINITION of 'Cross-Border Outstanding'

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 'Cross-Border Outstanding'

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.

RELATED TERMS
  1. Average Outstanding Balance

    The unpaid, interest-bearing balance of a loan or loan portfolio ...
  2. Loan

    The act of giving money, property or other material goods to ...
  3. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  4. Parallel Loan

    A type of foreign exchange loan agreement that was a precursor ...
  5. Foreign remittance

  6. Heckscher-Ohlin Model

    An economic theory that states that countries export what they ...
RELATED FAQS
  1. What does 'Incoterms' mean in relation to Ex Works (EXW) trades?

    Ex works is part of the published Incoterms and outlines the obligations of transportation to buyers and sellers. The International ... Read Full Answer >>
  2. What are the differences between Ex Works (EXW) and Free On Board (FOB)?

    Ex Works (EXW) and Free on Board (FOB) are Incoterms used to describe situations where sellers deliver goods. Ex Works describes ... Read Full Answer >>
  3. How are international investment banking practices regulated?

    The first step in creating international investment banking regulations occurred in 1930, when the Bank for International ... Read Full Answer >>
  4. What is the difference between comparative advantage and absolute advantage?

    Absolute and comparative advantage are two important concepts in international trade that largely influence how and why nations ... Read Full Answer >>
  5. What transactions are included in a country's balance of payments?

    The balance of payments is supposed to be for a country what a balance sheet is for a company. For example, the balance of ... Read Full Answer >>
  6. Can the government tax your capital gains from other countries?

    Income earned by U.S. citizens is subject to taxation by the IRS regardless of where it was generated. The government of ... Read Full Answer >>
Related Articles
  1. Mutual Funds & ETFs

    Protect Your Foreign Investments From Currency Risk

    Hedging against currency risk can add a level of safety to your offshore investments.
  2. Taxes

    Get A Tax Credit For Your Foreign Investments

    The foreign tax credit provides a break on investment income made and taxed in a foreign country.
  3. Mutual Funds & ETFs

    Getting Into International Investing

    Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges.
  4. Forex Education

    The U.S. Dollar's Unofficial Status as World Currency

    Discover how and why the U.S. dollar emerged as official currency in many foreign countries.
  5. Options & Futures

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
  6. Investing News

    A New Corporate Governance Initiative In Japan

    Expectations are low that Japan can create a corporate governance climate that meets global standards, but a new initiative is aimed at doing just that.
  7. Economics

    Can The U.S Close Its Trade Deficit?

    The stronger dollar could have increased the U.S. trade deficit. Instead, economic growth issues abroad and falling oil prices have helped shrink it.
  8. Investing

    Can Europe’s QE Be A Stimulus For U.S. Investors?

    Finding value in today’s markets has been difficult, so many investors are turning to opportunities outside of the U.S. But where should they look?
  9. Entrepreneurship

    Foreigner Starting A Business In The U.S.?

    Keep these four startup steps in mind before you do.
  10. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center