25 July 2023
The European Banking Authority (EBA) today published its annual funding plans Report, covering 159 banks that submitted their funding plans for a forecast period from 2023 to 2025. The plans show banks’ intentions to increase market-based funding over the forecast period. As extraordinary long-term central bank funding matures, banks plan to shift to short-term and long-term debt securities instead. This changing funding composition is particularly relevant in 2023 and 2024 when high amounts of central bank funding mature (TLTRO) and MREL targets become applicable. The Report highlights a sizable increase in banks’ interest margin, with interest rates for loans rising faster than for deposits. Central bank rate hikes and the rise in spreads for market-based funding instruments have contributed to higher funding costs.
Key indicators have been visualised in a dynamic way. To facilitate the navigation, here is the full list of key indicators that you can find in the graphs:
Slide 1: Growth expectations for selected liability classes.
Slide 2: Net issuance volumes for unsecured debt instruments (EUR billion).
The figures included in the Funding Plans Report are based on a sample of 159 banks as of December 2022, covering more than 80% of the EU/EEA banking sector by total assets.