Citibank 2014 Annual Report Download - page 274

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24. CONCENTRATIONS OF CREDIT RISK
Concentrations of credit risk exist when changes in economic, industry or
geographic factors similarly affect groups of counterparties whose aggregate
credit exposure is material in relation to Citigroup’s total credit exposure.
Although Citigroup’s portfolio of financial instruments is broadly diversified
along industry, product, and geographic lines, material transactions are
completed with other financial institutions, particularly in the securities
trading, derivatives and foreign exchange businesses.
In connection with the Company’s efforts to maintain a diversified
portfolio, the Company limits its exposure to any one geographic region,
country or individual creditor and monitors this exposure on a continuous
basis. At December 31, 2014, Citigroup’s most significant concentration of
credit risk was with the U.S. government and its agencies. The Company’s
exposure, which primarily results from trading assets and investments issued
by the U.S. government and its agencies, amounted to $216.3 billion and
$168.4 billion at December 31, 2014 and 2013, respectively. The Japanese
and Mexican governments and their agencies, which are rated investment
grade by both Moody’s and S&P, were the next largest exposures. The
Company’s exposure to Japan amounted to $32.0 billion and $29.0 billion at
December 31, 2014 and 2013, respectively, and was composed of investment
securities, loans and trading assets. The Company’s exposure to Mexico
amounted to $29.7 billion and $37.0 billion at December 31, 2014 and
2013, respectively, and was composed of investment securities, loans and
trading assets.
The Company’s exposure to states and municipalities amounted to
$31.0 billion and $33.1 billion at December 31, 2014 and 2013, respectively,
and was composed of trading assets, investment securities, derivatives and
lending activities.