
Note 23		Concentration of credit risk

Concentration of credit exposure may arise with a group of counterparties that have similar economic characteristics or are located in the same geographic region. The ability of such counterparties to meet contractual obligations would be similarly affected by changing economic, political or other conditions.

The amounts of credit exposure associated with our on- and off-balance sheet financial instruments are summarized in the following table:

Credit exposure by country of ultimate risk


$ millions, as at October 31										2018												2017
	Canada			U.S.			Other countries			Total			Canada			U.S.			Other countries			Total
On-balance sheet
Major assets ^(1)(2)(3)	$	431,917		$	99,063		$	40,405		$	571,385		$	407,878		$	96,542		$	38,469		$	542,889
Off-balance sheet
Credit-related arrangements
Financial institutions	$	45,295		$	16,358		$	12,258		$	73,911		$	46,069		$	13,155		$	7,660		$	66,884
Governments		9,880			10			50			9,940			8,377			11			73			8,461
Retail		124,625			386			390			125,401			120,451			341			381			121,173
Corporate		58,397			25,158			7,450			91,005			55,847			21,502			6,492			83,841
	$	238,197		$	41,912		$	20,148		$	300,257		$	230,744		$	35,009		$	14,606		$	280,359
Derivative instruments ⁽⁴⁾⁽⁵⁾
By counterparty type
Financial institutions	$	4,856		$	4,341		$	3,950		$	13,147		$	5,846		$	4,696		$	5,359		$	15,901
Governments		3,361			–			9			3,370			3,670			–			2			3,672
Corporate		1,268			993			783			3,044			1,305			731			922			2,958
		9,485			5,334			4,742			19,561			10,821			5,427			6,283			22,531
Less: effect of netting		(5,673	)		(3,252	)		(2,864	)		(11,789	)		(6,739	)		(3,972	)		(3,266	)		(13,977	)
Total derivative instruments	$	3,812		$	2,082		$	1,878		$	7,772		$	4,082		$	1,455		$	3,017		$	8,554

(1)	Major assets consist of cash and deposits with banks, loans and acceptances net of allowance for credit losses, securities, securities borrowed or purchased under resale agreements, and derivative instruments.

(2)	Includes Canadian currency of $410.5 billion (2017: $397.8 billion) and foreign currencies of $160.9 billion (2017: $145.1 billion).

(3)	No industry or foreign jurisdiction accounted for more than 10% of loans and acceptances net of allowance for credit losses, with the exception of the U.S., which accounted for 10.5% as at October 31, 2018 (2017: 9.7%).

(4)	Derivative instruments are presented at fair value.

(5)	Does not include exchange-traded derivatives of $1,870 million (2017: $1,811 million).

In addition, see Note 21 for details on the client securities lending of the joint ventures which CIBC has with The Bank of New York Mellon.

Also see shaded sections in “MD&A – Management of risk” for a detailed discussion on our credit risk.