HSBC 2015 Annual Report Download - page 167

HSBC HOLDINGS PLC
165
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
HSBC Holdings
Liquidity risk in HSBC Holdings is overseen by Holdings
ALCO (‘HALCO’). Liquidity risk arises because of HSBC
Holdings’ obligation to make payments to debt holders as
they fall due. The liquidity risk related to these cash flows is
managed by matching external debt obligations with
internal loan cash flows and by maintaining an appropriate
liquidity buffer that is monitored by HALCO.
At 31 December 2015, the Group had new issuance of
$6.8bn of CRD IV compliant non-common equity capital
instruments, of which $3.2bn were classified as tier 2 and
$3.6bn were classified as additional tier 1 (for details on
tier 2 and additional tier 1 instruments see Notes 30 and 35
on the Financial Statements).
The balances in the table below do not agree directly with
those on the balance sheet of HSBC Holdings as the table
incorporates, on an undiscounted basis, all cash flows
relating to principal and future coupon payments (except
for derivatives not treated as hedging derivatives).
Undiscounted cash flows payable in relation to hedging
derivative liabilities are classified according to their
contractual maturities. Derivatives not treated as hedging
derivatives are included in the ‘On demand’ time bucket.
In addition, loan commitments and financial guarantees
and similar contracts are generally not recognised on our
balance sheet. The undiscounted cash flows potentially
payable under financial guarantees and similar contracts
are classified on the basis of the earliest date on which
they can be called.
Cash flows payable by HSBC Holdings under financial liabilities by remaining contractual maturities
(Audited)
On
demand
Due within
3 months
Due between
3 and 12
months
Due between
1 and 5 years
Due after
5 years
$m $m $m $m $m
Amounts owed to HSBC undertakings 257 1,375 424 110
–
Financial liabilities designated at fair value
–
1,145 655 5,202 20,779
Derivatives 2,065
–
–
213
–
Debt securities in issue
–
15 47 250 1,176
Subordinated liabilities
–
229 699 5,149 25,474
Other financial liabilities
–
1,426 152
–
–
2,322 4,190 1,977 10,924 47,429
Loan commitments
–
–
–
–
–
Financial guarantees and similar contracts 68,333
–
–
–
–
At 31 December 2015 70,655 4,190 1,977 10,924 47,429
Amounts owed to HSBC undertakings 1,441 985 42 449
–
Financial liabilities designated at fair value
–
210 642 6,345 19,005
Derivatives 1,066
–
–
103
–
Debt securities in issue
–
16 50 263 1,303
Subordinated liabilities
–
252 770 5,815 28,961
Other financial liabilities
–
1,132 158
–
–
2,507 2,595 1,662 12,975 49,269
Loan commitments 16
–
–
–
–
Financial guarantees and similar contracts 52,023
–
–
–
–
At 31 December 2014 54,546 2,595 1,662 12,975 49,269