28/04/2016 Press Release
“Who-to-whom” data for securities, showing, for example, how much corporate or sovereign debt private households own, are being published for the first time.
● Euro area saving grew faster than non-financial investments. Net non-financial investment increased for corporations and households, and remained negative for the government sector. As a result, euro area net lending to the rest of the world increased further.
● Household debt continued to decrease, both with respect to GDP and disposable income (the respective ratios decreased to 59.3% and to 93.5% in the fourth quarter of 2015).
● The non-financial corporation debt-to-GDP ratio decreased to 131.8% in the fourth quarter of 2015. Gross non-financial investment increased at a higher rate (8.7% after 3.7% in the third quarter of 2015).
ECB publishes new data on securities by holding and issuing sector
For the first time, the euro area accounts contain “who-to-whom” data for securities, showing financial transactions and positions for which the creditor sector (security holder) and debtor sector (issuer of the security) are simultaneously identified. These data provide, for example, for household investments a breakdown of quoted shares issued by non-financial corporations, financial sub-sectors and nonresidents. Similarly, the data make it possible to identify which sectors hold debt securities issued by nonfinancial corporations and government.1
The chart depicts the network of inter-sector claims resulting from combining all instruments available on a who-to-whom basis that represent debt, namely loans, deposits and debt securities. It shows that, despite the central role of the MFI sector in the euro area economy, non-monetary financial institutions (non-MFIs) are an important source of direct funding especially for government and non-financial corporations (NFCs). Security data by holding and issuing sector for the euro area, and data for EU countries, will from now on be disseminated each quarter as an integral part of the quarterly euro area accounts. This press release focusses on who-to-whom data financial investment of households and financing of non-financial corporations (see also Tables 2.2 and 3.2 in the Annex).
Total euro area economy
Euro area net saving, that is the sum of the savings of households, corporations and the government sector after deducting the consumption of fixed capital, as a percentage of euro area net disposable income increased to 6.5% compared with the fourth quarter of 2014 (5.3%). Euro area net non-financial investment increased to 3.1% (compared to 2.3% of net disposable income in the fourth quarter of 2014). As a result, euro area net lending to the rest of the world increased compared with the fourth quarter of 2014 (3.7% after 3.2% of net disposable income). Net lending by households was broadly unchanged (3.3% of euro area net disposable income) while net lending of non-financial corporations increased (2.6% after 1.4%). Net lending by the financial corporations sector decreased and net borrowing by the government sector decreased compared with the fourth quarter of 2014. (For details, see also Table 1 in the Annex).
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