Under the impact of the financial crisis, shifts occurred in the composition of banks’ balance sheets. Data on all banks with registered offices in the Netherlands, without their foreign establishments, show that the issue of debt securities increased whereas interbank financing decreased by a similar amount. The data also show that while deposits by private sector parties make up a stable one-third of Dutch banks’ financing, there have been substantial maturity shifts.
Development of bank funding in the Netherlands
- Statistical News Release
Date 28 October 2011
Over the past four years (September 2007–September 2011), the balance sheet total of banks established in the Netherlands has grown by over 18% to almost EUR 2,500 billion.
Decreasing mutual confidence between banks shows up in reported data as a decline in interbank liabilities, whose share in the funding of Dutch banks fell from 11% to 7%. Offsetting this is a growth of funds raised in the capital markets through the issue of debt securities. This type of market financing now accounts for 21% of bank funding, up from 17% in 2007. One category where growth was especially brisk in recent years was that of covered bonds. These are bonds that offer the holder additional certainty in the form of a separate claim on specific bank assets.
Deposits on bank accounts have grown considerably, but their share in total funding remained stable at over one-third. At the same time, however, there were shifts in the maturity spectrum. The size of deposits redeemable at short notice, including households’ freely redeemable savings deposits, increased substantially by some EUR 100 billion. Partly offsetting this was a decline of deposits with agreed maturities, mainly driven by interest rate developments. The latter category fell from 14% to 11% of banks’ aggregated balance sheets.
For further information please contact Flore Kraaijeveld (020-524 3091, 06-310 28 660) or Kees Verhagen (tel. 020-524 2272, 06-211 23 922)