Citibank 2015 Annual Report Download - page 266

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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, 2015, 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 $223.0 billion
and $216.3 billion at December 31, 2015 and 2014, respectively. The
Mexican and United Kingdom 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 Mexico amounted to $22.5 billion and
$29.7 billion at December 31, 2015 and 2014, respectively, and was composed
of investment securities, loans and trading assets. The Company’s exposure
to the United Kingdom amounted to $20.4 billion and $18.0 billion at
December 31, 2015 and 2014, respectively, and was composed of investment
securities, loans and trading assets.
The Company’s exposure to states and municipalities amounted to
$29.3 billion and $31.0 billion at December 31, 2015 and 2014, respectively,
and was composed of trading assets, investment securities, derivatives and
lending activities.