Although the ratio of deposit liabilities to total assets slightly decreased in 2016 from 51.5% to 51.3%, the overall rising trend, since 2007 (47.3%), reveals bank shifts towards greater reliance on deposits as a source of funding. While the direction in trend has slightly fluctuated over the last four years it remains over the 50% mark every year.
The rise in the share of non-banks’ deposits to total assets has continued moving upwards, rising from 36.7% in 2015 to 37.2% in 2016. An upward trend since 2007 (29.1%) only falling in 2011.
The country breakdown for total deposits shows the lowest shares recorded in 2016 were in Denmark (28%), Ireland (30%), Sweden (35%) and Finland (37%). The figures continue to reflect, in part, different banking models, for example the well-developed covered bond markets in Scandinavia. Meanwhile countries with the largest shares of deposits financing banking sector’s assets were Bulgaria (71%), Slovenia (73%), Slovakia (74%) and Lithuania (75%).