Executive summary
Chart 1 Foreign deposits with monetary financial institutions in
selected euro-area countries(a)
Sources: Banca d’Italia, Banco de España, Banco de Portugal, Bank of Greece, Central Bank of Ireland, Deutsche Bundesbank and Bank calculations.
(a) Data to April 2012.
Chart 2 UK banks’ exposures to vulnerable euro-area countries
Sources and footnotes: see Table 2.A.
Chart 3 Market-based capital ratios and funding costs(a)(b)(c)
Sources: Capital IQ, Markit Group Limited, published accounts and Bank calculations.
(a) Market-based capital ratios are banks’ market capitalisation as a percentage of published risk-weighted assets.
(b) The sample shown is the largest 20 European banks by assets.
(c) Funding costs are proxied by five-year senior CDS premia. The ‘line of best fit’ shown above illustrates their relationship with market-based capital ratios.