Featured statistic: 36 percent

Date 1 October 2009

Banks in the Netherlands finance their lending and other investment through various sources. They attract deposits from each other and from banks abroad, from the government and from the private sector (such as families, companies and non-bank institutions). At the same time, banks fund themselves by issuing debt securities and placing shares. The largest provider of resources to banks is the private sector. Currently, more than 36% of banks’ total liabilities originates from this source (EUR 812 billion, July 2009).

Within the private sector, households – through current accounts and savings – provide the most resources to banks in the Netherlands (16%). They are followed by other financial institutions (10%), such as special purpose vehicles (SPVs), companies (8%), and insurers and pension funds (together 2%). A considerable part of the banks’ funding requirement is covered through the issue of debt securities, such as bonds (18%). Banks in the Netherlands attract EUR 485 billion of borrowed funds from outside the euro area (22%, mainly deposits and long-term loans).

The share of interbank financing decreased over the past four years, from 11% in 2005 to 8% now. On the other hand, the share of debts to the private sector in the banks’ funding requirement has increased (from 33% to 36%). This mainly reflects the growth of deposits that SPVs started holding at banks in connection with the marketability of residential mortgages (securitisations).

Chart Composition of liabilities of banks in the Netherlands (domestic banking operations)