Barclays 2013 Annual Report Download - page 218

Risk review
Funding risk – Liquidity continued
As at 31 December 2013, £332bn (2012: £300bn) of assets were identified as readily available. These consist of on and off-balance sheet assets
that have not been identified as encumbered and are in transferable form. They include cash and securities held in the Group liquidity pool as well
as additional unencumbered assets which provide a source of contingent liquidity. While these additional assets are not relied on in the Group’s
LRA, a portion of these assets may be monetised in a stress to generate liquidity through use as collateral for secured funding or through outright
sale. Loans and advances to customers are only classified as readily available if they are already in a form such that they can be used to raise
funding without further management actions. This includes excess collateral already in secured funding vehicles and collateral pre-positioned at
central banks and available for use in secured financing transactions.
As at 31 December 2013, £222bn (2012: £237bn) of assets were identified as available as collateral. These assets are not subject to any restrictions
on their ability to secure funding, be offered as collateral, or sold to reduce potential future funding requirements, but are not immediately
available in the normal course of business in their current form. They primarily consist of loans and advances a proportion of which would be
suitable for use in secured funding structures but are conservatively classified as not readily available because they are not in transferable form.
Not available collateral consist of assets that cannot be pledged or used as security for funding due to restrictions that prevent their pledge or use
as security for funding in the normal course of business.
Derivatives and reverse repo assets relate specifically to reverse repurchase agreements, derivatives and other similar secured lending. These are
shown separately as these on-balance sheet assets cannot be pledged. However, these assets can give rise to the receipt of non-cash assets which
are not recognised on the balance sheet, but can be used to raise secured funding or meet additional funding requirements.
Asset encumbrance
Encumbered
assets Unencumbered assets
Unencumbered – cannot be
pledged as collateral
On-balance sheet
As at 31 December 2013 Assetsa
£bn
Assets
pledged as
collateral
£bn
Readily
available
assets
£bn
Available
as collateral
£bn
Not available
as collateral
£bn
Derivatives
and reverse
repos
£bn
Cash and balances at central banks 43.8 – 43.8 – – –
Trading portfolio assets 130.6 65.3 65.3 – – –
Financial assets at fair value 36.6 0.3 9.1 21.0 0.9 5.3
Derivative financial instruments 322.7 – – – – 322.7
Loans and advances – banksb16.6 – 5.6 4.0 7.0 –
Loans and advances – customersb324.7 62.6 66.1 196.0 – –
Cash collateral and settlement balances 91.3 50.6 – – 40.7 –
Available for sale financial investments 86.8 8.4 74.6 0.5 3.3 –
Reverse repurchase agreements 186.0 – – – – 186.0
Property plant and equipment 3.8 – – – 3.8 –
Items in the course of collection from other banks 1.0 – – – 1.0 –
Other assets 3.5 – – – 3.5 –
Current tax asset 0.2 – – – 0.2 –
Investment in associates and joint ventures 0.6 – – – 0.6 –
Goodwill and intangible assets 6.3 – – – 6.3 –
Deferred tax assets 4.8 – – – 4.8 –
Retirement benefit assets –– ––––
Total on-balance sheet 1,259.3 187.2 264.5 221.5 72.1 514.0
Off-balance sheet
Unencumbered assets
Unencumbered – cannot be
pledged as collateral
Collateral
received
£bn
Collateral
received
of which
on-pledge
£bn
Readily
available
assets
£bn
Available
as collateral
£bn
Not available
as collateral
£bn
Fair value of securities accepted as collateral 389.8 321.1 67.2 – 1.5
Total unencumbered collateral 331.7 221.5 73.6
Notes
a The amounts included in the table are for the Group excluding BAGL. The assets relating to BAGL amount to £53bn (2012: £56.2bn), of which nil (2012: £0.2bn) are encumbered
assets. Securities received as collateral by BAGL of £0.7bn (2012: £0.6bn) have also been excluded.
b Excluding cash collateral and settlement balances.
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216 Barclays PLC Annual Report 2013