Table 68: Commitments to Extend Credit and Other Commitments



In millions	September 30 2017		December 31 2016
Commitments to extend credit
Total commercial lending	$	109,687	$	108,256
Home equity lines of credit	17,778		17,438
Credit card	24,184		22,095
Other	4,984		4,192
Total commitments to extend credit	156,633		151,981
Net outstanding standby letters of credit (a)	8,609		8,324
Reinsurance agreements (b)	1,690		1,835
Standby bond purchase agreements (c)	924		790
Other commitments (d)	990		967
Total commitments to extend credit and other commitments	$	168,846	$	163,897


(a)	Net outstanding standby letters of credit include $3.8 billion and $3.9 billion at September 30, 2017 and December 31, 2016, respectively, which support remarketing programs.

(b)

Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts and reflects estimates based on availability of financial information from insurance carriers. As of September 30, 2017, the aggregate maximum exposure amount comprised $1.5 billion for accidental death & dismemberment contracts and $.2 billion for credit life, accident & health contracts. Comparable amounts at December 31, 2016 were $1.5 billion and $.3 billion respectively.


(c)	We enter into standby bond purchase agreements to support municipal bond obligations.


(d)	Includes $.5 billion related to investments in qualified affordable housing projects at both September 30, 2017 and December 31, 2016.

Commitments to Extend Credit

Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee and contain termination clauses in the event the customer’s credit quality deteriorates.

Net Outstanding Standby Letters of Credit

We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 92% and 94% of our net outstanding standby letters of credit were rated as Pass as of September 30, 2017 and December 31, 2016, respectively, with the remainder rated as Below Pass. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Below Pass indicates a higher degree of risk.

If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on September 30, 2017 had terms ranging from less than one year to less than eight years.

As of September 30, 2017, assets of $1.2 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $.2 billion at September 30, 2017 and is included in Other liabilities on our Consolidated Balance Sheet.