Net lending/net borrowing of institutional sectors 07 Jan 2020

Published on 01/07/2020

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
2016 2017 2018
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 5,155 102 69 5,429 153 124 5,375 94 -141
Currency and deposits 1,425 56 0 1,491 67 -1 1,559 67 0
Debt securities 66 -1 0 58 -6 -2 46 -5 -4
Loans 10 1 0 10 0 0 11 0 0
Equity and investment fund shares 1,377 -18 59 1,507 1 131 1,426 -3 -77
of which equity 1,082 1 55 1,187 4 108 1,154 18 -57
of which investment funds shares 295 -20 4 320 -3 22 272 -21 -21
Insurance, pension and standardised guarantees 1,994 41 11 2,027 38 -4 2,001 37 -61
others 282 24 0 336 53 0 333 -3 0
Financial liabilities, of which : 1,536 46 1 1,633 103 -2 1,681 42 1
Currency and deposits 0 0 - 0 0 - 0 0 -
Debt securities - - - - - - - - -
Loans 1,275 53 0 1,343 74 -2 1,412 73 1
Equity and investment fund shares 9 0 0 10 0 0 10 0 0
of which equity 9 0 0 10 0 0 10 0 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 252 -7 0 281 29 0 259 -31 0
Net financial wealth (net financial assets) 3,620 56 69 3,796 50 125 3,694 52 -143
Non financial corporations
2016 2017 2018
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 8,438 230 220 9,535 397 609 9,546 344 -331
Currency and deposits 563 40 0 616 55 -3 650 33 1
Debt securities 52 4 1 68 8 1 63 -1 -1
Loans 1,647 75 3 1,759 126 -16 1,891 123 6
Equity and investment fund shares 4,942 82 216 5,761 110 631 5,571 149 -338
of which equity 4,808 90 215 5,623 114 624 5,450 172 -336
of which investment funds shares 134 -8 1 138 -4 7 121 -23 -1
Insurance, pension and standardised guarantees 39 0 - 42 3 - 42 1 -
others 1,194 29 1 1,289 93 -3 1,330 40 1
Financial liabilities, of which : 10,488 237 272 11,724 398 827 11,823 358 -257
Currency and deposits - - - - - - - - -
Debt securities 592 38 3 602 21 -11 612 29 -19
Loans 2,599 116 0 2,772 186 -10 2,978 204 3
Equity and investment fund shares 6,349 75 267 7,354 135 856 7,224 113 -244
of which equity 6,349 75 267 7,354 135 856 7,224 113 -244
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 948 8 2 995 56 -7 1,010 11 3
Net financial wealth (net financial assets) -2,050 -7 -52 -2,189 -1 -218 -2,277 -13 -74
Financial Corporations
2016 2017 2018
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 14,319 1,247 -648 14,905 1,543 -938 15,292 1,225 -1,010
Currency and deposits 3,313 190 0 3,619 346 -42 3,956 -17 17
Debt securities 3,520 136 15 3,553 145 -94 3,676 168 -53
Loans 3,094 135 3 3,205 135 -19 3,527 321 9
Equity and investment fund shares 2,518 61 58 2,777 131 126 2,601 -15 -161
of which equity 1,481 12 33 1,625 59 90 1,496 -30 -101
of which investment funds shares 1,037 49 25 1,151 72 36 1,106 14 -60
Insurance, pension and standardised guarantees 111 5 - 122 11 - 126 7 -
others 1,666 723 -735 1,534 775 -907 1,308 761 -824
Financial liabilities, of which : 14,008 1,234 -639 14,652 1,542 -916 14,888 1,221 -1,140
Currency and deposits 5,677 322 8 6,179 557 -57 6,858 316 22
Debt securities 1,507 19 -8 1,493 47 -62 1,522 58 -29
Loans 482 44 1 467 -15 -4 513 40 2
Equity and investment fund shares 2,456 48 105 2,646 80 102 2,421 -25 -201
of which equity 933 13 78 1,000 18 40 894 19 -125
of which investment funds shares 1,523 35 27 1,646 63 62 1,527 -44 -76
Insurance, pension and standardised guarantees 2,171 47 10 2,217 51 -4 2,195 46 -61
others 1,702 753 -755 1,638 821 -889 1,366 786 -874
Net financial wealth (net financial assets) 311 14 -10 253 1 -22 404 3 130
General government
2016 2017 2018
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 1,278 7 30 1,354 44 29 1,379 28 -4
Currency and deposits 130 -3 0 147 17 0 160 13 0
Debt securities 68 -5 2 58 -9 -1 54 -4 -1
Loans 106 0 0 105 -2 0 102 -3 0
Equity and investment fund shares 571 8 27 605 2 30 625 22 -3
of which equity 452 3 24 481 -1 24 498 14 3
of which investment funds shares 119 5 4 125 3 6 126 8 -6
Insurance, pension and standardised guarantees 5 0 - 5 0 - 5 0 -
others 398 9 0 433 35 0 433 -1 0
Financial liabilities, of which : 3,047 88 31 3,117 109 -41 3,192 87 -12
Currency and deposits 118 -1 + 122 3 + 131 9 +
Debt securities 2,200 61 29 2,231 72 -41 2,276 57 -12
Loans 310 -1 0 304 -6 0 303 -1 0
Equity and investment fund shares 43 0 0 44 -1 0 58 14 0
of which equity 43 0 0 44 -1 0 58 14 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees 0 0 - 0 0 - 0 0 -
others 374 28 2 416 41 0 424 7 0
Net financial wealth (net financial assets) 311 -80 -1 -1,763 -64 70 -1,813 -59 8

Published on Tuesday, January 7, 2020