What do banks lose money on during crises?
Charts accompanying Staff Memo 3/2014
Chart 1: Losses1) as a percentage of loans to different
sectors. Norwegian commercial banks. 1986–1991
14
12
10
14
Households
Total loans
Building, construction, electricity supply
Operation of property and other services
12
10
8
8
6
6
4
4
2
2
0
1986
1987
Source: Official Norwegian Report (NOU) (1992)
1) Write-downs
1988
1989
1990
0
1991
Chart 2: Losses1) as a percentage of loans to different
sectors. Norwegian savings banks. 1986–1991
10
9
8
7
10
Households
Total loans
Building, construction, electricity supply
Operation of property and other services
9
8
7
6
6
5
5
4
4
3
3
2
2
1
1
0
1986
1987
Source: Official Norwegian Report (NOU) (1992)
1) Write-downs
1988
1989
1990
0
1991
Chart 3: Individual write-downs as a percentage of
loans to households and non-financial enterprises.
Norwegian banks. Parent bank. 1997–2012
0.8
0.7
Non-financial enterprises
Households
0.8
0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0
0
-0.1
-0.1
1997
Source: Norges Bank
1999
2001
2003
2005
2007
2009
2011
Chart 4: Losses1) of all banks in the United
Kingdom. GBP billion. 1987–1997
6
5
6
Non-financial enterprises
Households²⁾
5
4
4
3
3
2
2
1
1
0
0
1987
1989
1991
1993
1995
Source: Bank of England (1998)
1) Write-downs
2) Losses on household loans secured on residential property constitute a small proportion of total
house-hold losses. The earliest available breakdown is for 1992, and shows that loans secured on
residential property accounted for around 20 percent of total losses on household loans.
1997
Chart 5: Problem loan shares1) of Icelandic banks2).
December 2009–August 2013
60
50
60
Enterprises
Households
50
40
40
30
30
20
20
10
10
0
Dec-09
0
Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Source: Central Bank of Iceland (2013)
1) Non-performing (more than 90 days’ delay in pay-ment) + loans with a high probability of default.
2) All figures are for parent banks and refer to book values. The data relate to the three largest
commercial banks in Iceland. The household data also include the Icelandic House Financing Fund.
Jun-13
Chart 6: Residential property loans in default1) as a proportion of
outstanding balances. Irish financial institutions that arrange
residential property loans. Percentages. Q3 2009–Q3 2013
20
20
18
18
16
16
14
14
12
12
10
10
8
8
6
6
4
4
2
2
0
0
Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13
Source: Central Bank of Ireland (2014)
1) More than 90 days’ delay in payment.
Chart 7: Losses1) suffered by Swedish banks during
the banking crisis of the 1990s. Percentages
60
50
Households including sole proprietorships
Building and construction and property management, etc.
Other enterprises.
60
50
40
40
30
30
20
20
10
10
0
0
Proportion of total losses
(1992–1993)
Source: Wallander (1994)
1) Losses comprise crystallised losses and problem loans.
Losses (1992–1993) as a proportion
of loans made (1990)
Chart 8: Losses1) as a proportion of total loans to the
group. All US commercial banks2). Percentages.
Seasonally adjusted. Q1 1991–Q3 2013
3.5
3
2.5
Total loans
Enterprises
Commercial property
Residential property loans
3
2.5
2
2
1.5
1.5
1
1
0.5
0.5
0
-0.5
Mar-91
3.5
0
-0.5
Mar-95
Mar-99
Mar-03
Mar-07
Mar-11
Source: FED (2014)
1) Write-downs
2) The loss ratios for total loans and enterprises relate to loans issued by both foreign and domestic offices. Commercial property
and residential property loans concern loans issued by domestic offices. Residential property loans are defined as “single family
residential mortgages”, while commercial property loans are defined as “commercial real estate loans (excluding farmland)”.
Chart 9: Annual loss ratios1) of Danish financial
institutions. Percentages. 1992–2012
13
11
9
13
Households
Property-related activities²⁾
Building and construction
Total loans
11
9
7
7
5
5
3
3
1
1
-1
1992
1996
2000
2004
Source: Nationalbanken (2013)
1) Write-downs as a percentage of loans made.
2) Property-related activities also include some other manufacturing activities.
2008
-1
2012
Chart 10: Problem loans1) among Spanish banks
that accept deposits. Percentages
60
60
Households, secured on residential property
50
Households, other
50
40
Building and construction and propertyrelated activities
Other enterprises
40
30
30
20
20
10
10
0
0
Proportion of total problem loans
(September 2008–September 2013)
Problem loans (September 2008–September
2013), as a proportion of loans to the group
(September 2008–September 2013)
Source: Banco de España (2014)
1) Problem loans comprise loans in default (payment delayed by 90 days or more), and loans carrying a particularly
high risk of losses.