Credit to the non-financial sector
The data set on credit to the non-financial sector captures borrowing activity by the government sector and the private non-financial sector in more than 40 economies.
Quarterly data on credit to the government sector cover on average 20 years, while those on credit to the private non-financial sector on average more than 45 years. The statistics follow the framework of the System of National Accounts.
On the lending side, two credit data series are provided. On the one hand, total credit comprises financing from all sources, including domestic banks, other domestic financial corporations, non-financial corporations and non-residents. On the other, bank credit includes credit extended by domestic banks to the private non-financial sector.
On the borrowing side, total credit to the non-financial sector is broken down into credit to the government sector and the private non-financial sector, and the latter is further split between non-financial corporations and households (including non-profit institutions serving households).
The financial instruments covered comprise currency and deposits (which are mostly zero in the case of credit to the private non-financial sector), loans and debt securities. The sum of these three instruments is defined here as “core debt”. For the government sector, core debt generally represents the bulk of total debt.
The statistics follow the framework of the System of National Accounts 2008, which stipulates that outstanding credit instruments should be valued at market values. For credit to the government, data are also provided in nominal (face) values, since these can be useful in some forms of debt sustainability analysis.
Research and publications
This article examines the importance of foreign banks in the provision of credit to emerging market borrowers. It documents this along two dimensions: the share of total credit provided and the concentration of claims from different foreign banking systems. The share of credit from foreign banks in total credit to emerging market economies has fallen since the Great Financial Crisis, but still stands at 15-20% on average, with the remainder provided by domestic banks or non-bank creditors. ...
We present a new data set on credit to the general government sector for 26 advanced and 14 emerging market economies. The main benefit of these new BIS series for "public debt" is that they provide data with similar characteristics from across the globe, facilitating crosscountry comparisons. Another distinctive feature is that the ...
Debt service ratios (DSRs) provide important information about the interactions between debt and the real economy, as they measure the amount of income used for interest payments and amortisations. Given this pivotal role, the BIS has started to produce and release aggregate DSRs for the total private non-financial sector for 32 countries from ...
Despite their importance, data capturing total credit to the private non-financial sector are scarce. This article introduces a new BIS database that provides this information for 40 economies with, on average, more than 45 years of quarterly data, reaching back to the 1940s and 1950s in some cases. It explains the key concepts underlying the compilation of the new series, including a description of the high-level statistical criteria applied, the characteristics of the underlying series used and the statistical techniques employed. For illustration purposes, some facets of the historical evolution of total credit are explored, revealing interesting similarities and differences across countries.
Excessive private sector debt can undermine economic stability. In this special feature, we propose the debt service ratio (DSR) as a measure of the financial constraints imposed by private sector indebtedness, and investigate its association with recessions and financial crises. We find that the DSR prior to conomic slumps is related to the size of the subsequent output losses. Moreover, the DSR provides a very accurate early warning signal of impending systemic banking crises at horizons of up to one to two years in advance. We conclude that the DSR can serve as a useful supplementary indicator for the build-up of vulnerabilities in the real economy and financial sector.
The credit to the non-financial sector data set captures the indebtedness of the major non-financial sectors. It shows the outstanding amount of debt by (ie liabilities of) the non-financial sector, broken down into the government sector and the private non-financial sector, where the latter is further split between non-financial corporations and households (including non-profit institutions serving households).
The debt instruments covered are debt securities, loans and currency and deposits (the sum of which is defined as “core debt”). These sectors and debt instruments are as defined in the System of National Accounts. For more details, see BIS Quarterly Review articles on private and government credit.
Two different lender categories are available but only for the borrower sector "private non-financial sector" (PNFS). "Total credit" comprises financing from all sources, including domestic banks, other domestic financial corporations, non-financial corporations and non-residents. "Bank credit" includes credit extended by domestic banks to the PNFS.
The NFC sector is as defined in the System of National Accounts (SNA sector S.11) and includes public and private corporations. PNFS is the sum of NFC and households. The “household” sector in the data set in turn comprises the households (SNA sector S.14) plus non-profit institutions serving households (SNA sector S.15).
Data on the private non-financial sector, non-financial corporations (NFC) and households are unconsolidated, eg credit from one NFC to another NFC is not netted out, ie included in the debt figures. However, for the general government sector, data are consolidated, eg credit from the central government to the local government is netted out, ie excluded from the debt figures.
Data on the debt of these sectors are shown on a gross basis, ie their own assets are not subtracted.
The total credit to the non-financial sector aggregate is the sum of the debt of the private and government sectors. For some countries, government sector debt is available in two valuations: market and nominal. Whenever available, the government data on market value are used to calculate the NFS aggregate.
Data are expressed in the following units: in local currency, in US dollars and as a percentage of GDP. Credit-to-GDP is calculated as the outstanding amount of debt at the end of the quarter compared with the sum of the last four quarters of GDP. The BIS does not publish the underlying GDP data. Data in local currency are converted to US dollars using the prevailing exchange rates at the end of the quarter. These US dollar exchange rates are published on the BIS Data Portal.
The data set provides two measures: aggregates based on conversion to US dollars at market exchange rates and at purchasing power parity (PPP) exchange rates. PPP rates data are taken from IMF, World Economic Outlook.
The G20 comprises Argentina, Australia, Brazil, Canada, China, the euro area, India, Indonesia, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, the United Kingdom and the United States. The advanced economies comprise Australia, Canada, Denmark, the euro area, Japan, New Zealand, Norway, Sweden, Switzerland, the United Kingdom and the United States. The emerging market economies comprise Argentina, Brazil, Chile, China, Colombia, Czechia, Hong Kong SAR, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Poland, Russia, Saudi Arabia, Singapore, South Africa, Thailand and Türkiye.
Since the release of this data set in 2013, the coverage of this data set has changed and expanded. The "Changes to the data set" lists changes since then, including the addition of new countries, new starting date and major revisions.