Net lending/net borrowing of institutional sectors 01 Jun 2021

Published on 06/01/2021

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
2018 2019 2020
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 5,386 103 -147 5,864 161 322 6,200 271 60
Currency and deposits 1,561 69 0 1,650 89 0 1,812 163 -1
Debt securities 44 -6 -2 41 -4 1 39 -2 0
Loans 11 0 0 10 0 0 11 0 0
Equity and investment fund shares 1,435 -4 -80 1,632 4 200 1,683 29 20
of which equity 1,164 15 -59 1,335 17 155 1,380 32 15
of which investment funds shares 272 -19 -21 297 -13 45 302 -2 5
Insurance, pension and standardised guarantees 2,005 46 -66 2,170 42 120 2,236 22 41
others 331 -2 0 362 32 0 420 58 0
Financial liabilities, of which : 1,669 41 1 1,764 98 1 1,855 96 -1
Currency and deposits 0 0 - 0 0 - 0 0 -
Debt securities - - - - - - - - -
Loans 1,413 72 1 1,499 89 0 1,567 72 -1
Equity and investment fund shares 10 0 0 10 0 0 11 0 0
of which equity 10 0 0 10 0 0 11 0 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 246 -32 0 254 9 0 278 24 0
Net financial wealth (net financial assets) 3,717 63 -148 4,101 63 321 4,345 175 60
Non financial corporations
2018 2019 2020
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 9,202 287 -435 10,445 220 1,011 10,916 390 32
Currency and deposits 648 32 1 702 53 1 967 157 -3
Debt securities 62 1 -1 67 4 2 59 -9 0
Loans 1,765 89 5 1,825 61 3 1,840 61 -12
Equity and investment fund shares 5,426 156 -442 6,477 33 1,005 6,641 147 50
of which equity 5,306 181 -441 6,357 50 993 6,480 94 47
of which investment funds shares 120 -25 -1 119 -17 11 161 53 3
Insurance, pension and standardised guarantees 42 1 - 43 0 - 46 3 -
others 1,259 7 1 1,331 69 1 1,362 30 -3
Financial liabilities, of which : 11,331 311 -474 12,754 231 1,193 13,245 409 111
Currency and deposits - - - - - - - - -
Debt securities 600 29 -19 671 39 32 750 78 2
Loans 2,860 171 3 2,973 121 3 3,150 205 -9
Equity and investment fund shares 6,857 130 -461 8,090 68 1,157 8,314 106 124
of which equity 6,857 130 -461 8,090 68 1,157 8,314 106 124
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees - - - - - - - - -
others 1,015 -19 3 1,020 2 1 1,031 21 -5
Net financial wealth (net financial assets) -2,130 -23 39 -2,309 -10 -182 -2,329 -19 -79
Financial Corporations
2018 2019 2020
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 15,239 1,261 -1,057 16,209 1,514 -518 18,175 2,800 -850
Currency and deposits 3,956 85 17 4,322 357 9 5,526 1,224 -29
Debt securities 3,642 164 -65 3,806 99 87 4,174 379 -2
Loans 3,593 288 9 3,753 157 6 3,982 235 -11
Equity and investment fund shares 2,564 14 -197 2,870 44 267 2,973 91 1
of which equity 1,456 -2 -137 1,667 39 176 1,709 52 -10
of which investment funds shares 1,107 16 -60 1,203 5 91 1,264 39 11
Insurance, pension and standardised guarantees 126 7 - 145 17 - 154 8 -
others 1,260 703 -824 1,196 841 -904 1,234 863 -825
Financial liabilities, of which : 14,918 1,263 -1,148 16,000 1,518 -453 17,867 2,799 -938
Currency and deposits 6,431 255 22 6,884 437 15 8,431 1,581 -36
Debt securities 1,531 53 -28 1,642 81 29 1,660 37 -19
Loans 1,008 127 13 1,087 64 7 1,163 90 -15
Equity and investment fund shares 2,420 -23 -215 2,675 0 255 2,731 117 -61
of which equity 894 22 -141 1,045 27 125 1,002 25 -68
of which investment funds shares 1,527 -46 -74 1,630 -27 130 1,729 92 7
Insurance, pension and standardised guarantees 2,200 57 -66 2,390 62 121 2,468 34 41
others 1,315 795 -874 1,311 876 -880 1,401 940 -849
Net financial wealth (net financial assets) 321 -2 90 209 -5 -65 308 1 88
General government
2018 2019 2020
EUR billions Stocks Transactions Revaluations Stocks Transactions Revaluations Stocks Transactions Revaluations
Financial assets, of which : 1,316 20 -17 1,393 23 57 1,588 197 -2
Currency and deposits 159 12 0 172 12 0 278 106 0
Debt securities 53 -4 -1 54 0 2 44 -11 1
Loans 104 -3 0 105 1 0 151 47 0
Equity and investment fund shares 571 11 -16 637 5 55 633 -3 -2
of which equity 445 3 -10 490 -1 43 485 -3 -4
of which investment funds shares 127 8 -6 147 6 13 148 0 1
Insurance, pension and standardised guarantees 5 0 - 5 0 - 6 0 -
others 423 4 0 419 5 0 476 57 0
Financial liabilities, of which : 3,162 73 -21 3,312 95 64 3,766 403 53
Currency and deposits 130 8 + 141 11 + 170 29 +
Debt securities 2,272 57 -21 2,408 72 64 2,747 286 53
Loans 305 -1 0 305 0 0 347 43 0
Equity and investment fund shares 47 3 0 48 1 0 48 0 0
of which equity 47 3 0 48 1 0 48 0 0
of which investment funds shares - - - - - - - - -
Insurance, pension and standardised guarantees 0 0 - 0 0 - 0 0 -
others 407 7 0 410 11 0 453 44 0
Net financial wealth (net financial assets) 321 -53 4 -1,919 -73 -6 -2,178 -207 -54

Published on Tuesday, June 1, 2021