A comparative analysis of the US and EU retail banking markets - Wsbi

5.3.1.1.2 Bank assets
Looking at graph 9, it can be seen that loans and
leases have consistently represented more than half
of the assets of FDIC-insured credit institutions over
the years, and this proportion has remained steady
throughout. Apart from ‘other assets’, no significant
change in proportion of total assets can be observed
for any of the different asset classes (figures for
graph 9 can be found in table J of the table annex).
In terms of bank loans to the private sector as a
proportion of GDP, it can be seen in Table 11 that
in 1980, these represented 35% of GDP, while the
equivalent proportion in 2000 was of the order of 49%.
5.3.1.1.3 Loan composition
As can be seen in graph 10 opposite, lending to
households in 2004 represented more than
two/thirds of all lending to the private sector, while
the remainder of lending to the private sector was
loans to business. Of lending to households, 88%
was home lending (representing 62% of total
lending to the private sector), and 9% was consumer
lending (representing 6% of total lending to the
private sector). Note that these figures include all
private sector lending, and therefore not just lending
by credit institutions (figures relating to graph 10 can
be found in the table annex in table K).
100%
Graph 11: Structure of the liabilities in the EU, 1992 – 2003 (in %)
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
■ Borrowing from Central bank
■ Interbank deposits
■ Non-bank deposits
■ Bonds
■ Other liabilities
Source: ESBG calculation based on OECD data:
“Bank Profitability”, 2002 & 2004.
5.3.1.2 Europe
5.3.1.2.1 Bank liabilities
Aggregate data for the EU 15 reveals that non-bank
deposits have remained by far the main single source of
funds for European banks over the period 1992-2003.
Such deposits have also represented a relatively
steady source of total bank liabilities, representing
45.7% of total bank liabilities in 1992 and 42.6% in
2003. This is in spite of the fact that market based
funding has grown significantly in Europe in the last
two or so decades, as can be evidenced by looking
at the rising ratios of stock market funding and
equity issues to GDP between the years 1980 and
2000 in table 11 (find figures for the structure of
liabilities in the EU in table L of the table annex).
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