Net lending/net borrowing of institutional sectors 09 Mar 2021

Published on 03/09/2021

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 : 5,455 150 130 5,383 89 -147 5,872 168 328
Currency and deposits 1,491 67 -1 1,559 67 0 1,650 90 0
Debt securities 51 -5 -1 44 -6 -2 41 -4 1
Loans 10 0 0 11 0 0 10 0 0
Equity and investment fund shares 1,538 2 136 1,435 -4 -80 1,635 4 202
of which equity 1,215 4 113 1,164 15 -59 1,337 16 157
of which investment funds shares 323 -2 23 272 -19 -21 298 -13 45
Insurance, pension and standardised guarantees 2,027 38 -4 2,005 39 -66 2,181 49 124
others 337 49 0 329 -8 0 355 29 0
Financial liabilities, of which : 1,630 97 -2 1,660 32 1 1,762 105 1
Currency and deposits 0 0 - 0 0 - 0 0 -
Debt securities - - - - - - - - -
Loans 1,343 74 -2 1,411 72 1 1,498 90 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 278 23 0 238 -40 0 254 15 0
Net financial wealth (net financial assets) 3,825 53 131 3,724 57 -149 4,110 63 327
Non financial corporations
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 9,319 313 617 9,195 279 -435 10,448 228 1,023
Currency and deposits 615 54 -3 647 31 1 703 54 1
Debt securities 64 4 1 62 1 -1 67 4 2
Loans 1,667 71 -16 1,766 90 5 1,825 61 3
Equity and investment fund shares 5,677 102 638 5,423 156 -442 6,487 35 1,017
of which equity 5,541 107 632 5,304 180 -441 6,366 51 1,005
of which investment funds shares 136 -5 6 120 -25 -1 121 -16 11
Insurance, pension and standardised guarantees 42 3 - 42 1 - 43 7 -
others 1,255 79 -3 1,255 0 1 1,323 68 1
Financial liabilities, of which : 11,493 319 831 11,333 310 -474 12,759 240 1,193
Currency and deposits - - - - - - - - -
Debt securities 590 21 -10 600 29 -19 671 39 32
Loans 2,684 133 -10 2,857 172 3 2,972 121 3
Equity and investment fund shares 7,183 117 859 6,857 130 -461 8,087 69 1,157
of which equity 7,183 117 859 6,857 130 -461 8,087 69 1,157
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 1,036 47 -7 1,019 -21 3 1,029 11 1
Net financial wealth (net financial assets) -2,174 -5 -214 -2,138 -31 39 -2,311 -12 -169
Financial Corporations
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 14,907 1,539 -934 15,275 1,297 -1,058 16,276 1,542 -515
Currency and deposits 3,618 344 -42 3,955 88 17 4,303 339 9
Debt securities 3,542 142 -87 3,642 164 -65 3,805 98 88
Loans 3,228 137 -19 3,592 285 9 3,753 155 6
Equity and investment fund shares 2,749 126 123 2,567 15 -198 2,874 44 268
of which equity 1,598 53 87 1,459 -1 -137 1,671 39 177
of which investment funds shares 1,151 73 36 1,107 16 -60 1,203 5 91
Insurance, pension and standardised guarantees 122 11 - 126 7 - 146 17 -
others 1,553 778 -907 1,294 738 -824 1,279 889 -905
Financial liabilities, of which : 14,646 1,538 -955 14,932 1,293 -1,160 16,047 1,543 -438
Currency and deposits 6,171 560 -57 6,852 357 22 7,319 451 15
Debt securities 1,506 47 -62 1,531 53 -28 1,641 81 29
Loans 506 -9 -5 619 80 2 683 55 1
Equity and investment fund shares 2,659 79 64 2,420 -23 -216 2,692 0 272
of which equity 1,013 17 2 894 22 -141 1,062 27 142
of which investment funds shares 1,646 63 62 1,527 -45 -75 1,630 -27 130
Insurance, pension and standardised guarantees 2,217 51 -4 2,200 49 -67 2,401 76 125
others 1,575 809 -890 1,297 777 -874 1,298 881 -880
Net financial wealth (net financial assets) 261 1 20 343 4 102 229 -1 -78
General government
2017 2018 2019
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 1,341 41 22 1,353 32 -17 1,438 23 57
Currency and deposits 147 17 0 161 14 0 173 12 0
Debt securities 58 -9 -1 53 -4 -1 54 1 0
Loans 107 -1 0 104 -3 0 105 1 0
Equity and investment fund shares 595 0 23 602 22 -16 665 5 56
of which equity 470 -3 17 475 14 -10 521 -1 44
of which investment funds shares 125 3 6 127 8 -6 145 6 12
Insurance, pension and standardised guarantees 5 0 - 5 0 - 5 0 -
others 430 34 0 428 3 0 435 5 0
Financial liabilities, of which : 3,124 111 -35 3,181 85 -21 3,341 96 64
Currency and deposits 122 3 + 131 9 + 142 11 +
Debt securities 2,237 72 -36 2,273 57 -21 2,408 72 64
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 415 43 0 413 6 0 426 13 0
Net financial wealth (net financial assets) 261 -69 58 -1,828 -54 5 -1,903 -73 -7

Published on Tuesday, March 9, 2021