The market-based funding of non-financial corporations continued its upward trend in February
Non-financial corporations continued to expand their market-based funding in February (+ 7.0%, year-over-year, against + 5.9% in January). The annual growth of bank loans remained dynamic at 6.1%. Overall, the market financing of non-financial corporations has grown by 6.4% over one year, reaching its highest point since August 2017.
In February, the average 5-year cost of market financing fell by 14 basis points, while that of bank loans increased by 12.
Annual growth rate, by type of financing (in %)
Average cost of financing (in %)
Source and calculations : General Directorate of Statistics
Composition of non-financial corporate debt
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 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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Financing of non-financial corporations
Published on Monday, April 8, 2019