RBS 2010 Annual Report Download - page 137

Funding sources
The table below shows the composition of the Group’s primary funding sources, excluding repurchase agreements.
2010 2009 2008
£m % £m % £m %
Deposits by banks
-cash collateral 28,074 3.8 32,552 4.0 45,783 4.8
- other 37,864 5.1 83,090 10.3 133,160 14.0
65,938 8.9 115,642 14.3 178,943 18.8
Debt securities in issue
-commercial paper 26,235 3.5 44,307 5.5 69,891 7.3
- certificates of deposits 37,855 5.1 58,195 7.2 73,925 7.8
- medium-term notes and other bonds 131,026 17.7 125,800 15.6 108,529 11.4
- covered bonds 4,100 0.6 —— ——
- other securitisations 19,156 2.6 18,027 2.2 17,113 1.8
218,372 29.5 246,329 30.5 269,458 28.3
Subordinated liabilities 27,053 3.7 31,538 3.9 43,678 4.6
Total wholesale funding 311,363 42.1 393,509 48.7 492,079 51.7
Customer deposits
- cash collateral 10,433 1.4 9,934 1.2 18,344 1.9
- other 418,166 56.5 404,317 50.1 441,974 46.4
Total customer deposits 428,599 57.9 414,251 51.3 460,318 48.3
Total funding 739,962 100.0 807,760 100.0 952,397 100.0
Key points
xThe Group has continued to reduce reliance on wholesale funding
and diversify funding sources. Deposits by banks were reduced by
43% since 31 December 2009.
xThe Group has increased the proportion of its funding from customer
deposits during 2010, from 51% at 31 December 2009 to 58% at 31
December 2010.
xThe Group was able to reduce short-term wholesale borrowing by
£93 billion to £157 billion (including £63 billion of deposits from
banks) during the year. Short-term wholesale funding excluding
derivative collateral decreased from £216 billion at 31 December
2009 to £129 billion at 31 December 2010.
135RBS Group 2010
Business review
Risk and balance sheet management