XML 49 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Significant Credit Concentrations
 12 Months Ended
Dec. 31, 2019
Concentration Risk Disclosure [Abstract]  
Significant Credit Concentrations Significant Credit Concentrations
Concentrations of credit risk exist when changes in economic, industry or geographic factors similarly affect groups of counterparties whose aggregate credit exposure is material in relation to Credco’s total credit exposure. Credco’s primary credit exposure, Card Member receivables, Card Member loans and loans to affiliates and other, is diversified among its affiliated companies with Card Members that operate in diverse industries, economic sectors and geographic regions.
The following table details Credco’s maximum credit exposure of the on-balance sheet assets by category, as of December 31:

(Billions)20192018
On-balance sheet:
Loans to affiliates and other$10  $14  
Institutions(a)
13  14  
Individuals(b)
12  11  
Financial Services(c)
1  1  
Due from affiliates1  —  
Total on-balance sheet$37  $40  
(a)Primarily reflects Card Member receivables from other corporate institutions, which are governed by institutional credit risk management.
(b)Primarily reflects Card Member receivables and loans, which are governed by individual credit risk management.
(c)Represents banks, broker-dealers, insurance companies and savings and loan associations.
As of December 31, 2019 and 2018, Credco’s most significant concentration of credit risk was with Loans to affiliates and Corporate institutions, including Card Member receivables. Credco purchased Card Member receivables and loans from TRS and certain of its subsidiaries. TRS and its subsidiaries generally advance these amounts on an unsecured basis. However, they review each potential customer’s credit application and evaluates the applicant’s financial history and ability and willingness to repay. TRS and its subsidiaries also consider credit performance by customer tenure, industry and geographic location in managing credit exposure.
The following table details Credco’s Card Member receivables and loans exposure in the United States and outside the United States as of December 31:

(Billions)20192018
United States$19  $18  
Outside the United States7  7  
Total$26  $25