NOTE 12

Short-Term Borrowings^(a)

The following table is a summary of short-term borrowings for the last three years:


	2017					2016					2015
(Dollars in Millions)	Amount		Rate			Amount		Rate			Amount		Rate

At year-end
Federal funds purchased	$	252		.77	%	$	447		.30	%	$	647		.23	%
Securities sold under agreements to repurchase		803		.61			801		.12			1,092		.02
Commercial paper		8,303		.68			10,010		.30			22,022		.21
Other short-term borrowings		7,293		2.13			2,705		1.00			4,116		.69
Total	$	16,651		1.31	%	$	13,963		.43	%	$	27,877		.27	%
Average for the year
Federal funds purchased^(b)	$	528		34.57	%	$	1,015		17.17	%	$	1,169		15.05	%
Securities sold under agreements to repurchase		917		.44			891		.18			973		.10
Commercial paper		8,236		.49			14,827		.26			21,892		.12
Other short-term borrowings		5,341		1.90			3,173		1.67			3,926		1.13
Total^(b)	$	15,022		2.18	%	$	19,906		1.34	%	$	27,960		.89	%
Maximum month-end balance
Federal funds purchased	$	600				$	2,487				$	1,868
Securities sold under agreements to repurchase		927					1,177					1,124
Commercial paper		9,950					21,441					23,101
Other short-term borrowings		7,293					6,771					7,656

(a)

Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent for the periods presented.

(b)

Average federal funds purchased and total short-term borrowings rates include amounts paid by the Company to certain corporate card customers for paying outstanding noninterest-bearing corporate card balances within certain timeframes per specific agreements. These activities reduce the Company’s short-term funding needs, and if they did not occur, the Company would use other funding alternatives, including the use of federal funds purchased. The amount of this compensation expense paid by the Company and included in federal funds purchased and total short-term borrowings rates for 2017, 2016 and 2015 was $178 million, $171 million and $175 million, respectively.