7.3 billion - Citigroup

Short-Term DebtSecured FinancingSecured financing is primarily conducted through Citi‘sbroker-dealer subsidiaries to facilitate customer matched-bookactivity and to efficiently fund a portion of the tradinginventory. As of March 31, 2012, approximately 30% of thefunding for Citi‘s non-bank entities, primarily the brokerdealer,was from secured financings. As of March 31, 2012,secured financing was $226 billion and averagedapproximately $219 billion during the quarter. Securedfinancing at March 31, 2012 increased quarter-over-quarter by$28 billion from $198 billion at December 31, 2011 andincreased year-over-year by $38 billion from $188 billion atMarch 31, 2011. As compared to the prior quarter, theincrease in secured financing is in line with increases in liquidtrading assets and reverse repos. As compared to the prior year,the increase in secured financing is primarily driven by achange in the mix of short-term funding sources.Commercial PaperThe following table sets forth Citi‘s commercial paperoutstanding for each of its non-bank entities and significantCitibank entities, respectively, for each of the periodsindicated:In millions of dollarsMarch 31,2012December 31,2011March 31,2011Commercial paperNon-bank $ 6,239 $ 6,414 $ 9,481Bank 14,795 14,872 15,096Total $21,034 $21,286 $24,577Liquidity MeasuresCitigroup runs a centralized treasury model where the overallbalance sheet is managed by Citigroup Treasury throughGlobal Franchise Treasurers and Regional Treasurers. Citiuses multiple measures in monitoring its liquidity, includingwithout limitation those described below.In broad terms, the structural liquidity ratio, defined as thesum of deposits, long-term debt and stockholders‘ equity as apercentage of total assets, measures whether the asset base isfunded by sufficiently long-dated liabilities. Citi‘s structuralliquidity ratio has remained stable over the past year: 72% atMarch 31, 2012, 73% at December 31, 2011 and 73% atMarch 31, 2011.In addition, Citi also believes it is currently in compliancewith the proposed Basel III Liquidity Coverage Ratio (LCR),even though such ratio is not proposed to take effect until2015. The LCR is designed to ensure banks maintain anadequate level of unencumbered cash and highly liquidsecurities that can be converted to cash to meet liquidity needsunder an acute 30-day stress scenario. The proposedminimum requirement for LCR is 100%. Although stillawaiting final guidance from its regulators, based on itscurrent interpretation, understanding and expectations of theproposed rules, Citi believes that it is in compliance with theproposed Basel III LCR with an estimated LCR above 125%.For a more detailed discussion of Citi‘s overall liquiditymanagement and additional liquidity measures and stresstesting, see ―Capital Resources and Liquidity – Funding andLiquidity‖ in Citigroup‘s 2011 Annual Report on Form 10-K.Other Short-Term BorrowingsAt March 31, 2012, Citi‘s other short-term borrowings were$35 billion, compared with $33 billion at December 31, 2011and $54 billion at March 31, 2011. This amount includesborrowings from the FHLBs and other market participants.The average balance of borrowings from the FHLBs and othermarket participants for the quarter ended March 31, 2012 wasgenerally consistent with the quarter-end balance. See Note15 to the Consolidated Financial Statements for furtherinformation on Citigroup‘s and its affiliates‘ outstanding longtermdebt and short-term borrowings.39CITIGROUP – 2012 FIRST QUARTER 10-Q