IS U.S. INTERBANK LENDING IN SOUTH AFRICA FOR U.S.-R.S.A. TRADE?

With a Listing of the Overall Exposure of Individual U.S. Banks
by John E. Lind, California-Nevada Committee on Corporate Responsibility
San Francisco, California, United States
September 1985
Publisher: California-Nevada Committee on Corporate Responsibility
18 pages
Type: Report
Coverage in Africa: South Africa
Coverage outside Africa: United States, United Kingdom
Language: English
Contents: Introduction • Private Sector Lending • Interbank Lending • Trade Finance • South African Balance of Payments • Conclusion • Lending by Individual Banks in South Africa • Appendix: Sources and Details of Individual Bank Lending • The report includes TABLE I: Private Sector Outstandings in South Africa by U.S. Bank Group as of December 31, 1984 and TABLE II: LENDING BY U.S. BANKS IN SOUTH AFRICA AT THE END OF 1984. The report says between the end of 1980 and the end of 1984, the lending by U.S. banks to the South African economy increased 4.5 fold; this increase in lending was primarily in interbank lending to South African banks which increased over seven fold and accounted for 69% of the total lending by the end of 1984. The report says if our analysis is correct, then balance of payments deficits are being financed by South Africa banks through short-term financing; there is definitely a liquidity problem that is beginning to show itself because of the overexposure of South African banks in the short term; this is consonant with the thesis that short term U.S. bank lending is being used to solve medium turn term balance of payment problems of the South African economy. The report discusses state owned corporations, Citibank, Chase Manhattan, NCNB (North Carolina National Bank), the South African banking system, National Westminster USA, Barclays Bank of New York, Schroders (NY), Union Bank of California (Standard Chartered), American Express International, European American Bank, BankAmerica Corp., Morgan, Continental Illinois, First Chicago, Security Pacific, First Interstate, Wells Fargo, Crocker National, Mellon, Bank of Boston, Irving, Bank of New York, Interfirst, Republic Bank (TX), Harris Bancorp, Northwest Corp, MCorp, the depreciation of the South African Rand, the American Bankers Association, sanctions, the government sector, U..S.-South Africa trade, bank and non-bank lending, the Nine Money Center banks, the South African balance of payments, gold, the South African Reserve Bank, foreign currency, foreign exchange, the Bank of England, parastatals, and UK banks.
Used by permission of John E. Lind, CANICCOR Research.
Collection: John Harrington's South Africa Papers, Michigan State University Libraries Special Collections