U.S. and European banks, including Citigroup Inc. and HSBC Holdings plc, are considering selling off parts of their businesses as they prepare for tough times ahead, Reuters reported.

The report quoted a Wall Street Journal article that said Citigroup might sell or close several of its mid-size units and HSBC could exit all or parts of its $13 billion U.S. auto finance business.

Some executives estimate that Citigroup could get rid of as much as $12 billion worth of what are considered noncritical assets, according to the Journal. Units it could possibly shed include Student Loan Corp., which is 80 percent owned by the bank; its North American auto lending business; Brazilian credit card company Redecard SA, in which Citigroup held a 24 percent stake as of Sept. 30; and its Japanese consumer finance business.

New Citi Chief Executive Vikram Pandit’s plans to streamline operations include laying off about 20,000 employees and shedding business lines, the Journal reported.

HSBC is one of the most strongly capitalized of the world’s global banks, but it has consistently said it will focus on fast-growing emerging markets and take a “tough-minded” approach to capital allocation.

HSBC declined to comment on whether it was considering the sale of any assets, Reuters reported, and Citigroup was not immediately reachable for comment.