Philipp Hartmann - European Capital Markets Institute

Philipp Hartmann - European Capital Markets Institute

Philipp Hartmann - European Capital Markets Institute


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Bank Deleveraging in EuropePhilipp HartmannEuropean Central BankEuropean Capital Markets Institute Annual Conference on “Capital Markets forGrowth: Averting Financial Disintegration in Europe”, Brussels, 18 October 2012Disclaimer: Any views expressed are only the speaker’s own and shouldnot necessarily be regarded as views of the ECB or the Eurosystem.

Bank deleveraging following banking crisesLoan-to-deposit ratio (percentage)Source: ECB (2012a, chart A.2)1

So far more equity issuance than asset sheddingAsset-to-equity ratioSource: Update of chart A.3 in ECB (2012a)2

Deleveraging needs of European banks2012-2013 for 70 banks that participated in the EBA 2011 stress tests (trillion EUR)Source: ECB (2012a, chart A.5)3

Substitution across external financing sourcesEuro area non-financial corporations (billion EUR, 12-month cumulated flows)Source: ECB and ECB calculations4


Credit and economic growth in the euro areaSource: ECB and ECB calculations7

Progress on EBA-driven European bankrecapitalisations and deleveraging27 banks for which EBA 2011 stress tests identified capital shortfall (30 June deadline)Source: EBA (2012)8

Impact of Basel III, EBA or nationalcapital exercises on deleveragingNet percentage of banks reporting reductions in RWA and increases in capital (lending survey)Source: ECB (2012b, chart 9)9

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