Unless otherwise defined, this includes – in general, financial investments held by domestic economic agents in places outside their own country, including within a common currency area, and – in particular, such positions held by institutions. – However, investments held in another country do not necessarily always involve an exposure to that country. Often, transactions are carried out in a foreign location for legal and tax reasons. In the course of the Irish crisis, for example, it became known that German banks had invested around EUR 130 billion in Ireland, which were now highly at risk. However, as it then turned out, due to the special features of the Dublin financial center, many German institutions had conducted business from there all over the world. The domestic exposure of German banks within the Republic of Ireland amounted to only around EUR 25 bn. – See foreign bank deposits, foreign claims, foreign assets, foreign affiliates.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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