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Funding & Liquidity Overview

Funding & Liquidity Overview

Funding Objectives

  • Maintain broad and well-diversified funding sources (unsecured, ABS, and deposits) to allow the Company to meet its maturing obligations.
  • Cost effectively finance current and future asset growth in its global businesses.
  • Maintain a strong liquidity profile and support current liquidity objectives, including regulatory requirements.

Liquidity Management

  • Liquidity risk is centrally managed by the Funding and Liquidity Committee, which reports into the Asset-Liability Committee (ALCO).
  • The committee manages liquidity risk at an aggregate Company level and at the major legal entities in order to ensure that sufficient funding and liquidity resources are available in the amount and in the location needed in a stress event.
  • The Company’s liquidity objective is to maintain access to a diverse set of cash, readily marketable securities, and contingent sources of liquidity so that AXP can continuously meet expected future financing obligations and business requirements for at least a 12-month period, even in the event it is unable to continue to raise new funds under its regular funding programs during a substantial weakening in economic conditions.
  • In addition to the deposit, short-term and long-term capital market programs, American Express has in place various sources of cash including
    • Cash and readily marketable securities
    • Committed bank credit facilities
    • Access to secured borrowings through its financing facilities
    • Access to the Federal Reserve discount window
  • American Express also has substantial flexibility to manage its cash requirements:
    • Discretionary expenses and investments
    • Substantial intra-company ability to mobilize liquidity where needed
    • Share repurchases
    • Dividends
  • Liquidity is managed through the breadth of sources of our funding programs, as well as through the quality and liquidity of our funded assets.

For further details, refer to our 10-Q or 10-K SEC filings and our Fixed Income Presentations.