TIC data - quick analysis about the cross border transactions

A few interesting point from the new TIC data (the TIC is the US cross-border transactions data)





This is the cumulative data from 1979,so it contain the net volume of the cross – border transaction (purple line) it is the net data, without any interest calculation, however at the maturity , during the rollover of the loan they have to capitalise or pay back the interest ,so it could have only a marginal effect on the full volume.

The interesting is the net TIC and the net TIC without the banks liabilities.

The TIC been up in the past few month, however it is just due to the change in the Banks liabilities, without it the TIC is flat.

If we check the long term ratio between the full net tic, and the banks liabilities, then we get the next chart (percentage, based on cumulative numbers)

Left is the newest.

It is show that from the peak of the 1995,the bank deposit/loan declined as tool to finance the trade deficit .