Financing of non-financial corporations 2022Sep
Published on 10 November 2022
Following a change in the editorial line of some Stat Info (see the press release available here), this publication is now discontinued but the corresponding time series remain available in Webstat (the Banque de France's statistics website). The new Stat info "Financing of enterprises" can be consulted online here
Non-financial corporations financing still dynamic
In September 2022, the increase in the financing of non-financial corporations in France reached + 4.9 % over one year, after + 4.6 % in the previous month. Bank financing remained dynamic, growing by + 7.9 % after + 7.2 % in August, whereas that of market financing declined sligthy (- 0.4 %).
The average cost of funding for non-financial corporations continued to rise to 2.72 % in September, as a result of higher market rates. Cost of funding for bank financing decreased because of composition effects.
The average cost of funding for non-financial corporations continued to rise to 2.72 % in September, as a result of higher market rates. Cost of funding for bank financing decreased because of composition effects.
Financing of non-financial corporations
(Gross stocks and flows in billions of euros, growth rate and interest rate in %)
| Outstanding amount |
Annual net issuance |
Annual growth rate |
Cost of financing in euros |
|||
| Sept-2022 | Sept-2022 | Aug-2022 | SEP- 2022 | Aug-2022 | SEP- 2022 | |
| Financing of NFCs | 2,007 | 93 | 4.6 | 4.9 | 2.55 | 2.70 |
| - Of which : bank loans | 1,306 | 96 | 7.2 | 7.9 | 1.98 | 1.76 |
| - Of which : market financing | 701 | -3 | 0.0 | -0.4 | 3.60 | 4.47 |
| in euros | 594 | 7 | 1.5 | 1.2 | ||
| in currencies | 107 | -10 | -7.8 | -8.9 | ||
Annual growth rate, by type of financing (in %)
Average cost of financing in euros (in %)![]()
Source and calculations : General Directorate of Statistics, Economics and International
Composition of non-financial corporate debt
Non-financial corporate debt in this « Stat Info » refers to debt securities issues (bonds and negotiable debt securities) subscribed by residents and non-residents as well as to the credits granted by resident credit institutions.
Negotiable debt securities include short-term commercial papers (less than one year) and medium-term negotiable notes. Further details on loans to non-financial corporations is available in the « Stat Info » referring to loans to non-financial corporations :
https://www.banque-france.fr/en/statistics/loans/loans/loans-non-financial-corporations
Overall non-financial corporate debt also includes bank loans from non-resident credit institutions. This measure can be found in the « Stat Info » related to non-financial sector debt :
https://www.banque-france.fr/en/statistics/savings/financial-accounts/financial-accounts
The average cost of bank loans to non-financial corporations is computed using the monthly interest rate applied by French banks. This indicator only covers euro-denominated loans with a term of at least one year and with an initial amount of at least one million euros. It excludes revolving term facilities and overdratfs.
The average cost of market financing is calculated on the basis of month-end actuarial rates of return of alive securities. It only covers euro-denominated securities with an initial maturity longer than one year and with a fixed coupon rate. A specific calibration process using the yield curve is performed to align different maturities with a constant 5-year maturity. The average cost of market financing calculation methodology excludes extreme values.
The average cost of bank loans and the average cost of market financing cannot be directly compared since they often differ in their maturity horizon.
Negotiable debt securities include short-term commercial papers (less than one year) and medium-term negotiable notes. Further details on loans to non-financial corporations is available in the « Stat Info » referring to loans to non-financial corporations :
https://www.banque-france.fr/en/statistics/loans/loans/loans-non-financial-corporations
Overall non-financial corporate debt also includes bank loans from non-resident credit institutions. This measure can be found in the « Stat Info » related to non-financial sector debt :
https://www.banque-france.fr/en/statistics/savings/financial-accounts/financial-accounts
The average cost of bank loans to non-financial corporations is computed using the monthly interest rate applied by French banks. This indicator only covers euro-denominated loans with a term of at least one year and with an initial amount of at least one million euros. It excludes revolving term facilities and overdratfs.
The average cost of market financing is calculated on the basis of month-end actuarial rates of return of alive securities. It only covers euro-denominated securities with an initial maturity longer than one year and with a fixed coupon rate. A specific calibration process using the yield curve is performed to align different maturities with a constant 5-year maturity. The average cost of market financing calculation methodology excludes extreme values.
The average cost of bank loans and the average cost of market financing cannot be directly compared since they often differ in their maturity horizon.
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