HSBC 2012 Annual Report Download - page 211

209
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
UK. Since HSBC controls the size of the portfolio
of securities held by these conduits, no contingent
liquidity risk exposure arises as a result of these
undrawn committed lending facilities.
The table below shows the level of undrawn
commitments to customers outstanding for the five
largest single facilities and the largest market sector,
and the extent to which they are undrawn.
The Group’s contractual undrawn exposures at 31 December monitored under the contingent liquidity risk
limit structure
(Audited)
HSBC UK HSBC USA HSBC Canada
The Hongkong and
Shanghai Banking
Corporation
2012 2011 2012 2011 2012 2011 2012 2011
US$bn US$bn US$bn US$bn US$bn US$bn US$bn US$bn
Commitments to conduits
Consolidated multi-seller
conduits
– total lines ........................... 7.8 11.4 2.3 0.9 1.0 0.7 – –
– largest individual lines ...... 0.7 0.7 0.5 0.3 0.8 0.5 – –
Consolidated securities
investment conduits
– total lines ............................ 18.1 22.1 – – – – – –
Third party conduits
– total lines ............................ – – 0.8 1.4 – – – –
Commitments to customers
– five largest45 ....................... 6.0 3.4 6.0 5.7 1.7 1.8 2.1 1.9
– largest market sector46 ....... 11.0 7.5 7.5 6.5 4.5 3.8 2.4 2.5
For footnotes, see page 249.
Sources of funding
(Audited)
Our primary sources of funding are customer current
accounts and customer savings deposits payable on
demand or at short notice. We issue wholesale
securities (secured and unsecured) to supplement
our customer deposits and change the currency
mix, maturity profile or location of our liabilities.
The funding sources and uses table, which
provides a consolidated view of how our balance
sheet is funded, should be read in the light of the
LFRF, which requires operating entities to manage
liquidity and funding risk on a stand-alone basis.
The table analyses our consolidated balance
sheet according to the assets that primarily arise
from operating activities and the sources of funding
primarily supporting these activities. The assets and
liabilities that do not arise from operating activities
are presented as a net balancing source or
deployment of funds.
The level of customer accounts continued to
exceed the level of loans and advances to customers.
Excluding the effect of repos from customer
accounts and reverse repos from loans and advances
to customers, the adjusted advances to deposits ratio
at 31 December 2012 was 73.4% (2011: 73.5%). The
positive funding gap was predominantly deployed
into liquid assets; cash and balances with central
banks and financial investments, as required by the
LFRF.
Loans and other receivables due from banks
continued to exceed deposits taken from banks.
The Group remained a net unsecured lender to the
banking sector.