Commission staff working document - Charts accompanying the Report on effects of Directives 2006/48/EC and 2006/49/EC on the economic cycle - Accompanying document to the Report from the Commission to the Council and the European Parliament on effects of Directives 2006/48/EC and 2006/49/EC on the economic cycle COM(2010)327 final
Date: 2010-06-23
Institutions: European Commission
Subjects: credit guarantee, credit institution, financial instrument, financial solvency, investment company, management audit, provision of services, report, right of establishment

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EUROPEAN COMMISSION 

Brussels, 23.6.2010 
SEC(2010) 754 

COMMISSION STAFF WORKING DOCUMENT 

CHARTS ACCOMPANYING THE REPORT ON EFFECTS OF DIRECTIVES 
2006/48/EC AND 2006/49/EC ON THE ECONOMIC CYCLE 

Accompanying document to the 

Report from the Commission to the Council and the European Parliament on effects of 
Directives 2006/48/EC and 2006/49/EC on the economic cycle 

COM(2010)327 final 

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Chart 1: Portfolio adjustments between Q2 2008 and Q4 2008 

e
r
u
s
o
p
x
E
g
h
C

0
0
02
0
1
0
0
0
1
0
-
0
2
-

e
r
u
s
o
p
x
E
g
h
C

0
4
0
2
0
0
2
0-
4
-

e
r
u
s
o
p
x
E
g
h
C

4

2

0
2
-
4
-
6
-

Total

0

500

1000 1500 2000

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

Bank

e
r
u
s
o
p
x
E
g
h
C

0
5

0

0
5
0-
0
1
-

e
r
u
s
o
p
x
E
g
h
C

0
06
04
2
0
0
2
0-
4
-

Corporate

0

500

1000

1500

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

Sovereign

0

50

100

150

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

0

100

200

300

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

Equity

0

5

10
Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

20

15

Retail

0

100 200 300 400 500

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

Securitisation

e
r
u
s
o
p
x
E
g
h
C

0
2
0
0
2
0-
4
0-
6
-

e
r
u
s
o
p
x
E
g
h
C

0
3
0
2
0
1
0
0
1
-

0

20

40

60

80

100

Exposure 2008Q2 EUR bn.
Chg. Exposure 2008Q2 to Q4 in EUR bn

Source: TFICF data 

Chart  2:  The  impact  of  the  CRD  on  euro 
area  banks’  credit  standards  Q1  2008  –  Q2 
2009 (in per cent) 

Chart  3:  Cross-country  dispersion  of  the 
impact  of 
the  CRD  on  banks’  credit 
standards Q1 2008 – Q2 2009 (in per cent)1 

contributed considerably to tightening of credit standards
contributed somewhat to tightening of credit standards
basically no impact on credit standards
contributed somewhat to easing of credit standards
contributed considerably to easing of credit standards
not applicable

Loans and credit lines to enterprises

Loans to households

100

90

80

70

60

50

40

30

20

10

0

Small and medium-sized
enterprises

Large enterprises

For house purchase

Consumer credit and
other lending

100

80

60

40

20

0

-20

-40

median
mean
max
min
1st quantile
3rd quantile

SME

Large enterprises

House purchase

Consumer credit

Source: ECB, bank lending survey 

Source: ECB, bank lending survey 

1 

EN 

Positive percentages indicate net tightening, negative percentages indicate net easing at a country level 

2 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
 
 
Chart 4: Factors having a tightening effect on bank lending decisions, October 2008 –April 
2009 (per cent of banks stating that a given factor had a somewhat or significantly tightening 
effect) 

100%

80%

60%

40%

20%

0%

Availability of collateral for existing business
Costs related to maintaining target capital level
Availability of collateral for new business
Ability to transfer credit risk (securitization)
Changes in internal lending rules
Competition driven considerations
Changes in required regulatory capital
Liquidity position
Costs and ability to access retail funding
Costs and ability to access wholesale funding
Access to various crisis-related state aid measures
General economic outlook
Strength of bank's financial results
Borrower specific outlook

Other

Somewhat tightening effect

Significantly tightening effect

Sources: European Commission, EU bank questionnaire 

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3 

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Chart  5:  Factors2  contributing  to  changes  in 
credit  standards  on  loans  to  enterprises  (net 
percentages) 

Chart 6: Factors3 contributing to changes in 
credit  standards  on  loans  to  households  for 
house purchase (net percentages) 

Perception of risk

Competition

Bank balance sheet constraints

100

80

60

40

20

0

-20

Perception of risk

Competition

Bank balance sheet constraints

100

80

60

40

20

0

-20

2003

2004

2005

2006

2007

2008

2009

2003

2004

2005

2006

2007

2008

2009

Sources: ECB, bank lending survey 

Sources: ECB, bank lending survey  

Chart 7: The financial turmoil impact on euro 
area  banks’  capital  position  and  lending4  (in 
per cent) 

Chart 8: Growth of loans to households and 
non-financial  corporations  and  economic 
activity5 (annual growth rates in per cent) 

Basically no impact

Impact on capital no impact on lending 

Impact on capital and lending

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Dec-07 Mar-08

Jun-08

Sep-08 Dec-08 Mar-09

Jun-09

Sep-09 Dec-09

GDP
Loans to households
Loans to non-financial corporations

16

14

12

10

8

6

4

2

0

-2

-4

-6

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

16

14

12

10

8

6

4

2

0

-2

-4

-6

Source: ECB, bank lending survey 

Sources: ECB 

2 

3 

4 
5 

The  “perception-of-risk”  factor  includes  the  “industry  and  firm-specific  outlook”,  the  “expectations 
regarding general economic activity”, and the “risk on collateral demanded”; the “competition” factor 
refers  to  competition  from  “other  banks”,  “non-banks”  and  “market  financing”  respectively;  the 
“balance-sheet-constraints” factor includes “costs related to banks capital position”, “banks’ ability to 
access  market  financing”  and  “banks’  liquidity  position”.  The  net  percentages  reported  for  the  three 
groups  of  contributing  factors  are  simple  averages  of  the  underlying  factors  listed  above.  Positive 
percentages indicate net tightening, negative – net easing. 
The “perception-of-risk” factor includes to the “expectations regarding general economic activity”, and 
“housing  market  prospects”;  the  “competition”  factor  refers  to  competition  from  “other  banks”  and 
from “non-banks”. The net percentages reported for the three groups of contributing factors are simple 
averages of the underlying factors listed above. Positive percentages indicate net tightening, negative – 
net easing 
December 2009 figures refer to banks expectations for the fourth quarter of 2009 (as of October 2009) 
Deflated by the GDP deflator 

EN 

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large-sized 

Chart  9:  New  business  volumes  of  small6 
and 
to  non-financial 
loans 
corporations  in  the  euro  area  (€  billion;  6-
month moving sum) 

Chart  10:  Spreads  between  rates  on  small-
sized  and  large-sized  loans  to  non-financial 
corporations  in  the  euro  area  (percentage 
points) 

Large-sized loans  (6-month moving sum; left-hand scale)

Small-sized loans (6-month moving sum; right hand scale)

Floating rate and up to 1 year initial rate fixation

Over 1 and up to 5 years initial rate fixation

Over 5 years initial rate fixation

1,800

1,700

1,600

1,500

1,400

1,300

1,200

1,100

1,000

900

800

550

530

510

490

470

450

430

410

390

370

350

2.5

2.0

1.5

1.0

0.5

0.0

-0.5

2003

2004

2005

2006

2007

2008

2009

2003

2004

2005

2006

2007

2008

2009

Sources: ECB and ECB calculations 

Sources:  ECB  and  ECB  calculations(last  observation  is 
September 2009) 

Chart  11:  Outcome  of  applications  for 
external  financing  by  euro  area  SMEs  (as  a 
percentage  of  all  firms  applying  for  external 
financing) 

Chart  12:  External  financing7  of  non-
financial  corporations  in  the  euro  area  (3-
€ 
month  non-centred  average;  flows  in 
billion; seasonally adjusted) 

Applied and got everything

Applied but only got part of it

Applied but refused because cost too high

Applied but was rejected

Don't know / No answer

Bank loan (new or
renewal)

Trade credit

Other external
financing

60%

17%

4%

12%

7%

53%

25%

4%

13%

6%

57%

13%

2%

15%

12%

0%

20%

40%

60%

80%

100%

short-term bonds
quoted shares
long-term sebt securities with fix rate
long-term debt securities linked to short-term rates
long-term loans
short-term loans

80

60

40

20

0

-20

-40

80

60

40

20

0

-20

-40

Feb-03

Aug-03

Feb-04

Aug-04

Feb-05

Aug-05

Feb-06

Aug-06

Feb-07

Aug-07

Feb-08

Aug-08

Feb-09

Aug-09

Source: ECB 

Source: ECB 

6 

7 

“Small-sized” loans refer to loans below €1 million,  while “large-sized” loans refer to loans above €1 
million; last observation is September 2009 
Data are up to August 2009 

EN 

5 

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Chart 13: Relationship between external credit ratings and capital charges 

Capital requirements in Euro per 1000 Euro exposure

1200

1000

800

600

400

200

0

AAA

AA+ AA

AA- A+ A A-

BBB+

BBB

BBB-

BB+ BB

BB- B+ B B- C D

Securitisation, sophisticated

Securitisation, simplified

Corporate

Source: Basel II framework, own calculations 

EN 

6 

   EN