Page 15 - EBA 2013.2869 Risk Assesment Report final proof4

Basic HTML Version

R I S K A S S E S S M E N T O F T H E E U R O P E A N B A N K I N G S Y S T E M
13
0 %
10 %
20 %
30 %
40 %
You view credit and interbank market
fragmentation across the EU as:
1. Not materially relevant with a few
exceptions
2.Occurring but not materially relevant for
systemic stability and growth
3.Occurring and with negative implications
for systemic stability and growth
Agree
Somewhat agree
Somewhat disagree
Disagree
No opinion
0
20
40
60
80
100
120
140
160
DE
FR
EL
IT
ES
GB
IE
PT
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
Figure 3: Evidence of fragmentation of the EU single market (
source:
RAQ market analysts)
The length of the bars shows the percentage of respondents who agreed or somewhat agreed with the statement on the y-axis. The y-axis
carries the distribution ABCDE, i.e. answers to all closed questions, namely: ‘A’ — agree; ‘B’ — somewhat/mostly agree; ‘C’ — somewhat/mostly
disagree; ‘D’ — disagree; and ‘E’ — not applicable or no opinion.
decreases of the previous semester. At
the same time, there are two main factors
proving divergent evolutions, namely bank
funding and bank lending. On the one hand,
with regard to bank funding, some observed
rebalancing of funding flows amongst EU
countries and the recent deposit inflows
evidence, including into banks in countries
with financially stressed sovereigns, are
positive signs of retreating fragmentation.
On the other hand, with regard to bank lend-
ing, indications of a substantial widening of
cross-border lending rates and contracting
new bank lending in countries with finan-
cially stressed sovereigns provide further
evidence of increasing retrenchment pre-
venting the extension of credit in sectors
and geographies where it may be used most
effectively. The same is being acknowledged
in the RAQ market analysts’ responses, with
recognised implications for systemic stabil-
ity and growth.
Figure 2: Consolidated total foreign claims (ultimate risk basis) of reporting european banks
vis-à-vis selected countries, 2010 Q4 = 100 (
source
: BIS)
0 %
10 %
20 %
30 %
40 %
You view credit and interbank market
fragmentation across the EU as:
1. Not materially relevant with a few
exceptions
2.Occurring but not materially relevant for
systemic stability and growth
3.Occurring and with negative implications
for systemic stability and growth
Agree
Somewhat agree
Somewhat disagree
Disagree
No opinion
0
20
40
60
80
100
120
140
160
DE
FR
EL
IT
ES
GB
IE
PT
2007 Q1
2007 Q2
2007 Q3
2007 Q4
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4