Net lending and net borrowing of institutional sectors 10 Jun 2020

Published on 06/10/2020

Net lending or borrowing of an institutional sector is the difference between the sector's net acquisitions of financial assets and the net increase in its liabilities. We refer to net financing when the acquisitions of assets are greater than the increase in liabilities (the balance of the financial transactions account is then positive); net borrowing when the balance is negative.
Net lending/net borrowing of institutional sectors
EUR billions
Financial account and financial balance sheet by sector
The financial account is a flow account, i.e. it measures the financial transactions over a reference period (quarter or year). Added to the stock of the previous year, the flow, adjusted for various elements, determines the stock observed at the end of the current year. It describes, by type of instrument and for each institutional sector, the changes in financial assets and liabilities linked to acquisitions, disposals and commitments over a certain period. The balance is net lending or borrowing.

Financial balance sheets constitute an inventory of financial assets and liabilities outstanding amounts at the end of each period. Financial net worth is the remaining balance item in financial balance sheets. The relationship between the changes in stocks and transaction flows over a certain period is specified in . the revaluation accounts and other changes in volumeThis relationship is defined by the following formula:


Stocks(t) = Stocks (t-1) + Flow(t) + Holdings_gains_losses(t) + Other_Changes_Volume(t)


Financial account and financial balance sheet published below show this relationship for four institutional sectors - households, non-financial corporations, financial corporations, general government

Households
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 5,466 152 127 5,412 91 -144 5,907 172 328
Currency and deposits 1,491 67 -1 1,559 67 0 1,649 89 0
Debt securities 55 -7 1 45 -8 -1 42 -4 1
Loans 10 0 0 11 0 0 10 0 0
Equity and investment fund shares 1,539 -1 131 1,456 0 -78 1,662 9 203
of which equity 1,218 3 108 1,185 24 -57 1,364 19 161
of which investment funds shares 322 -4 23 272 -24 -20 298 -10 42
Insurance, pension and standardised guarantees 2,027 38 -4 2,005 39 -66 2,181 51 124
others 343 55 0 336 -7 0 363 27 0
Financial liabilities, of which : 1,632 98 -2 1,674 46 1 1,779 107 1
Currency and deposits 0 0 - 0 0 - 0 0 -
Debt securities - - - - - - - - -
Loans 1,343 74 -2 1,412 73 1 1,498 89 0
Equity and investment fund shares 10 0 0 10 0 0 10 0 0
of which equity 10 0 0 10 0 0 10 0 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 279 24 0 253 -27 0 270 18 0
Net financial wealth (net financial assets) 3,834 53 128 3,738 45 -145 4,128 65 328
Non financial corporations
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 9,578 395 628 9,623 339 -302 10,959 146 1,196
Currency and deposits 616 56 -3 650 33 1 703 52 1
Debt securities 64 4 1 62 -1 -1 67 4 2
Loans 1,759 126 -16 1,891 123 6 1,895 5 3
Equity and investment fund shares 5,818 114 650 5,660 146 -308 6,877 29 1,189
of which equity 5,682 119 643 5,541 169 -308 6,756 45 1,178
of which investment funds shares 136 -5 6 119 -23 -1 121 -16 11
Insurance, pension and standardised guarantees 42 3 - 42 1 - 43 7 -
others 1,280 91 -3 1,318 37 1 1,374 49 1
Financial liabilities, of which : 11,722 397 827 11,819 355 -257 13,361 148 1,404
Currency and deposits - - - - - - - - -
Debt securities 590 21 -10 600 29 -19 671 39 32
Loans 2,772 186 -10 2,978 204 3 3,035 67 3
Equity and investment fund shares 7,354 136 855 7,225 115 -244 8,661 68 1,368
of which equity 7,354 136 855 7,225 115 -244 8,661 68 1,368
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 1,006 54 -7 1,017 8 3 994 -26 1
Net financial wealth (net financial assets) -2,144 -2 -199 -2,196 -15 -45 -2,402 -2 -208
Financial Corporations
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 14,926 1,543 -937 15,267 1,231 -1,020 16,212 1,522 -515
Currency and deposits 3,619 346 -42 3,956 88 17 4,304 342 9
Debt securities 3,562 149 -97 3,664 166 -65 3,796 113 83
Loans 3,205 135 -19 3,527 242 9 3,654 117 5
Equity and investment fund shares 2,777 128 129 2,602 -14 -160 2,914 42 274
of which equity 1,625 54 94 1,495 -31 -100 1,712 38 183
of which investment funds shares 1,151 73 35 1,107 16 -60 1,202 5 91
Insurance, pension and standardised guarantees 122 11 - 126 7 - 146 14 -
others 1,547 773 -907 1,293 742 -824 1,282 894 -904
Financial liabilities, of which : 14,693 1,542 -916 14,939 1,225 -1,133 16,036 1,520 -433
Currency and deposits 6,179 557 -57 6,859 328 22 7,347 471 15
Debt securities 1,506 47 -62 1,530 53 -28 1,640 82 28
Loans 467 -15 -4 513 40 2 522 0 1
Equity and investment fund shares 2,676 79 102 2,463 -25 -188 2,739 -3 279
of which equity 1,030 17 41 936 20 -113 1,112 26 150
of which investment funds shares 1,646 63 62 1,527 -45 -75 1,627 -29 129
Insurance, pension and standardised guarantees 2,217 51 -4 2,200 49 -67 2,401 76 125
others 1,637 822 -889 1,362 780 -874 1,375 894 -880
Net financial wealth (net financial assets) 233 1 -22 328 6 112 176 2 -82
General government
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 1,352 43 29 1,385 32 5 1,453 23 42
Currency and deposits 147 17 0 161 14 0 170 9 0
Debt securities 58 -9 0 54 -4 -1 56 0 3
Loans 107 -1 0 104 -3 0 105 1 0
Equity and investment fund shares 605 2 30 634 22 6 680 4 39
of which equity 481 -1 24 507 14 12 538 2 26
of which investment funds shares 124 3 6 126 8 -6 142 3 13
Insurance, pension and standardised guarantees 5 0 - 5 0 - 5 0 -
others 429 34 0 428 3 0 437 9 0
Financial liabilities, of which : 3,121 112 -41 3,177 85 -22 3,339 98 63
Currency and deposits 122 3 + 131 9 + 142 11 +
Debt securities 2,231 72 -41 2,267 57 -22 2,402 72 63
Loans 306 -6 0 305 -1 0 304 -1 0
Equity and investment fund shares 44 -1 0 58 14 0 59 1 0
of which equity 44 -1 0 58 14 0 59 1 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees 0 0 - 0 0 - 0 0 -
others 418 44 0 415 5 0 430 15 -
Net financial wealth (net financial assets) 233 -69 70 -1,792 -53 26 -1,885 -75 -21

Published on Wednesday, June 10, 2020