Assets and liabilities
France, Germany, the Netherlands and Italy collectively accounted for 63.7 % of financial assets and 57.8 % of liabilities of the EU’s non-financial corporations in 2022
Total financial assets of the EU’s non-financial corporations were valued at €22 059 billion in 2022. This was much lower than the value of their financial liabilities which stood at €37 245 billion. Combined, these values resulted in a smaller negative net asset position in 2022 (€15 187 billion) than in 2021 (€16 811 billion).
The annual rate of change for total financial assets and liabilities of non-financial corporations between 2021 and 2022 is illustrated in Figure 1. The EU recorded growth of 1.5 % for assets and a decline of 3.4 % for liabilities.
It should be noted that rates of change are calculated in national currencies. Among the EU Member States, the highest annual growth rates for assets were observed in Hungary (16.7 %), Bulgaria (15.9 %), Denmark (15.4 %) and Malta (15.1 %). For liabilities, Hungary (17.5 %) also had the highest annual growth rate, followed by Romania (12.5 %). Among the non-EU countries shown in Figure 1, Norway had an annual growth rate for assets (18.2 %) that was higher than in any of the EU Member States, while Türkiye had much higher rates (63.5 % for assets and 52.6 % for liabilities; 2021 data). Ireland (down 8.8 %) and Germany (down 3.3 %) were the only Member States with negative annual rates of change for assets. By contrast, eight Member States had negative rates for liabilities, with the largest decreases in Sweden (down 11.0 %) and Germany (down 8.2 %). A total of 19 Member States had faster growth for assets than for liabilities, with the largest differences in the two rates observed in Sweden (21.8 percentage points (pp)), Denmark (16.3 pp) and Malta (10.2 pp). Among the eight Member States where the growth rate was faster for liabilities than for assets, the largest difference was in Lithuania (3.1 pp).
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(%, change over previous year)
Source: Eurostat (nasa_10_f_bs)
The share of each EU Member State in the EU’s total financial assets and liabilities of non-financial corporations in 2022 is presented in Figure 2. France held between one quarter and one fifth (22.5 %) of the financial assets of non-financial corporations in the EU as well as one fifth (20.0 %) of their liabilities. Germany had more than one fifth of assets (21.6 %) and a somewhat smaller share (17.7 %) of liabilities. The Netherlands held just over one tenth of assets (11.9 %) and just under one tenth of liabilities (9.8 %), while Italy had a smaller share of assets (7.7 %), but a higher share of liabilities (10.3 %). Aside from Ireland and Spain, all of the other Member States held shares that were less than 6.0 % each. France, Germany, the Netherlands and Italy collectively accounted for 63.7 % of financial assets and 57.8 % of liabilities of the EU’s non-financial corporations.
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(%)
Source: Eurostat (nasa_10_f_bs)
Figure 3 presents the financial assets and liabilities of non-financial corporations as a percentage of GDP. In 2022, these assets were valued in the EU at 138.7 % of GDP, while these liabilities were valued at 234.2 % of GDP, resulting in negative net assets equivalent to 95.5 % of GDP. In relative terms, the financial liabilities of the EU’s non-financial corporations were 1.7 times as high as their assets.
Net assets of non-financial corporations were negative (in other words, liabilities were greater than assets) in 2022 for all EU Member States. Negative net assets ranged from 228.8 % of GDP in Sweden to 47.0 % of GDP in Germany. Comparing the ratio of financial liabilities with that for assets, the largest relative difference was in Greece, where non-financial corporations’ financial liabilities were 3.8 times as high as assets.
In all EU Member States, the value of non-financial corporations’ financial liabilities as a percentage of GDP were above 100.0% in 2022; in other words, liabilities were greater than GDP. The ratio was highest in Luxembourg and in Ireland, where the financial liabilities of non-financial corporations were valued at, respectively, 5.7 and 4.9 times their GDP. As such, the value of their financial liabilities as a percentage of GDP was more than double the EU average for this ratio.
By contrast, the value of non-financial corporations’ financial assets was below 100.0 % of GDP in 14 EU Member States. Luxembourg and Ireland again recorded the highest ratios, as the financial assets of non-financial corporations were valued at, respectively, 4.7 and 3.3 times their GDP.
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(%)
Source: Eurostat (nasa_10_f_bs)
Structure of assets and liabilities
The largest shares of non-financial corporations’ financial assets were equity and investment fund shares, and currency and deposits
Non-financial corporations’ financial liabilities were mainly equity and investment fund shares; loans also made up a relatively large share
There are four prominent types of instruments of assets and liabilities of non-financial corporations in the EU: currency and deposits; loans; equity and investment fund shares; other accounts receivable/payable. Four other types of assets and liabilities accounted for small shares (at most 1.1 % of assets or 4.7 % of liabilities) of total financial assets/liabilities of EU non-financial corporations in 2022: monetary gold and special drawing rights (SDRs); debt securities; insurances, pensions and standardised guarantees; financial derivatives and employee stock options. In this article, these smaller types of instruments are grouped together as other instruments in Figure 4 for assets and Figure 5 for liabilities. The category of monetary gold and special drawing rights (SDRs) was valued at zero for all EU Member States for the non-financial corporations sector.
The category of equity and investment fund shares accounted for the largest share (48.3 %) of financial assets of EU non-financial corporations in 2022. This type of instrument was followed by currency and deposits (19.8 %), other accounts receivable/payable (15.4 %) and loans (13.5 %). Other instruments accounted for a 3.0 % share.
The largest type of assets held by non-financial corporations in 2022 varied somewhat among the EU Member States.
- Equity and investment fund shares was the largest category for 13 Member States as well as in Norway. Among these, there were five where this category contributed more than half of all financial assets: Ireland (60.6 %), Germany (54.7 %), Denmark (53.0 %), Belgium (52.4 %) and the Netherlands (51.4 %).
- In 11 Member States, currency and deposits was the largest category and this was also the case in Albania and Türkiye (both 2021 data). In three of the 11 Member States, currency and deposits contributed more than half of financial assets: Greece (69.4 %), Bulgaria (55.2 %) and Romania (51.0 %); this was also the case in Türkiye (54.6 %; 2021 data).
- Other accounts receivable/payable was the largest category in Poland, Slovenia and Czechia: the largest share among these was 41.8 % in Poland.
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(% share of total financial assets of non-financial corporations)
Source: Eurostat (nasa_10_f_bs)
The largest shares of total financial liabilities of the EU’s non-financial corporations in 2022 were equity and investment fund shares (56.6 %) and loans (28.8 %). Other accounts receivable/payable had an 8.2 % share, followed by other instruments (6.3 %); the latter was mainly in the form of debt securities (4.7 % of the total). The share for currency and deposits was 0.2 %.
A comparison of the structure of financial assets with that for financial liabilities of the EU’s non-financial corporations in 2022 shows four main differences.
- currency and deposits made up 19.8 % of assets compared with 0.2 % of liabilities;
- loans made up 13.5 % of assets compared with 28.8 % of liabilities;
- equity and investment fund shares made up 48.3 % of assets compared with 56.6 % of liabilities;
- other accounts receivable/payable made up 15.4 % of assets compared with 8.2 % of liabilities.
Among the EU Member States, the three largest types of instruments held by non-financial corporations in 2022 were generally equity and investment fund shares, loans, and other accounts receivable/payable. Equity and investment fund shares was the largest category in all Member States except for Cyprus. This category accounted for half or more of financial liabilities in 21 Member States, peaking at 67.6 % in Denmark. In Cyprus, loans accounted for 49.0 % of liabilities, the largest share for any Member State. The largest share of financial liabilities of non-financial corporations held in other accounts receivable/payable was 23.3 % in Romania, while other instruments accounted for less than one tenth of the total in all Member States, peaking at 8.9 % in Germany.
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(% share of total financial liabilities of non-financial corporations)
Source: Eurostat (nasa_10_f_bs)
Developments
The value of financial assets of non-financial corporations as a percentage of GDP decreased in 2022 in 24 Member States
In absolute terms, total financial assets of the EU’s non-financial corporations grew continuously during the period 2012–2022. By 2022, the total value had increased by 74.7 %, from €12 630 billion in 2012 to €22 059 billion in 2022. A similar development over the same period was observed for total financial liabilities, but with decreases in 2018 (down 1.2 %) and in 2022 (down 3.4 %). Overall, financial liabilities increased by 56.1 % from €23 860 billion in 2012 to €37 245 billion in 2022.
Despite an absolute increase in the value of financial assets of non-financial corporations in 2022, this value as a percentage of GDP was 6.5 % lower in 2022 than in 2021 in the EU (see Figure 6). This ratio increased in three EU Member States, up 1.6 % in Sweden, 2.3 % in Malta and 4.0 % in Denmark. Elsewhere, the decrease was largest in Ireland (down 21.8 %), followed by Greece (down 10.8 %), Lithuania (down 10.2 %) and Germany (down 9.8 %). Norway also recorded a relatively large decrease in 2022, down 10.6 %.
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(%)
Source: Eurostat (nasa_10_f_bs)
Comparison between sectors
Non-financial corporations held a higher share of financial liabilities; households and NPISH held a higher share of financial assets
A comparison of the relative size of financial assets with that of financial liabilities for various sectors gives valuable insights. Three sectors – financial corporations, non-financial corporations, and (combined) households and non-profit institutions serving households (NPISH) – are compared in Figure 7 for assets and Figure 8 for liabilities. Note that the general government sector is not included in this comparison and so the analyses refer only to a part of the domestic economy.
In the EU, the financial corporations sector held the largest share of financial assets (59.3 %) and liabilities (63.4 %) in 2022. Non-financial corporations had the second largest share of liabilities (29.3 %) but the smallest share of assets (16.1 %), while households and NPISH had the second highest share of assets (24.5 %) but the smallest share of liabilities (7.4 %).
In the EU, the value of financial assets held by financial corporations in 2022 was 3.7 times that held by non-financial corporations. In most EU Member States, the value of financial assets of financial corporations was between 1.9 and 4.2 times as high as that of non-financial corporations, with higher ratios in Greece (6.3 times as high), Cyprus (11.4 times), Malta (28.5 times) and Luxembourg (31.2 times).
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(%)
Source: Eurostat (nasa_10_f_bs)
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(%)
Source: Eurostat (nasa_10_f_bs)
Source data for tables and graphs
Data sources
The compilation of financial accounts follows the European System of Accounts 2010 (ESA 2010).
The financial account and balance sheet
Eurostat’s website includes detailed financial accounts by country. Financial accounts are published in consolidated and non-consolidated forms; within this article the latter are presented. As a rule, the accounting entries in ESA 2010 are non-consolidated, as a consolidated financial account requires information on the counterpart grouping of institutional units. Note that data for the EU and EA aggregates are calculated as a sum of data for EU and EA Member States; no adjustment is made for flows between Member States.
The non-financial corporations sector
In general, sole proprietorships and most partnerships that do not have an independent legal status are considered to be part of the household sector, rather than as corporations (financial or non-financial). However, there are sometimes practical difficulties in delineating ‘quasi-corporations’ (unincorporated businesses with the characteristics of companies) between corporations on one hand and the household sector on the other, which may influence the scope and comparability of the data presented as well as the internal consistency of the full set of accounts.
Context
Financial accounts form part of the national accounting framework and are compiled in the EU in accordance with ESA 2010. They are a significant tool for analysing financial developments and policy decisions, and provide key statistical information on financial transactions, other financial flows, and financial balance sheets by institutional sector, including non-financial corporations. Particular issues relating to the non-financial corporations sector include the indebtedness of the sector, its debt servicing burden and its impact on access to external finance as well as its capacity to withstand economic shocks. Indeed, since the global financial and economic crisis financial accounts for non-financial corporations have been integrated into an enlarged set of policy indicators – the EU’s macroeconomic imbalance procedure (MIP) surveillance mechanism – that are used to monitor private sector debt.
Financial accounts show how borrowers obtain resources by incurring liabilities or reducing assets, and how lenders allocate their surpluses by acquiring assets or reducing liabilities. The types of assets and liabilities that non-financial corporations hold carry different levels of risk and can be used to assess financial risk, vulnerability and welfare.
