Changes in bank financing patterns : April 2012

The recent financial crisis has led to changes in banks' funding patterns at the global level which have been widely discussed in policy and academic fora. This report aims at identifying and documenting the main changes in the funding patterns of euro area banks. Using statistics for monetary financial institutions (MFIs) domiciled in the euro area from 1999 to the end of 2011 on an unconsolidated basis, the report documents changes in five broad categories of bank funding: interbank, customer deposits, debt securities, central bank funding and capital. The analysis identifies a break in the trend of most indicators in the third quarter of 2008, supported by an econometric time-series exercise. The main conclusions are reported below.