These data contain information on the aggregate consolidated profitability, balance sheets and solvency of EU banks, and refer to all EU Member States. The banks are divided into three size groups: small, medium-sized and large. In addition, the data provide information on foreign-controlled institutions active in EU countries.
The Consolidated Banking Data (CBD) contain information on the profitability, balance sheets and solvency of EU banks, and refer to all EU Member States. The banks are divided into three size groups: small, medium-sized and large. In addition, the data provide information on foreign-controlled institutions active in EU countries. The statistics are based on annual data.
International Financial Reporting Standards (IFRS)-compliant and local Generally Accepted Accounting Principles (GAAP)-compliant data are treated separately, since the substantial conceptual differences between these two accounting regimes would render the aggregation of IFRS and non-IFRS data meaningless in some cases. Six EU countries (non-IFRS countries) do not report IFRS-compliant data: Germany, Luxembourg, Hungary, Austria, Sweden and the United Kingdom. In these countries, IFRS-compliant reporting for supervisory purposes is not yet required, even though listed banks have already adopted the new accounting standards and publish results accordingly. The remaining 21 EU countries (IFRS countries) implemented the new standards in or before 2005 or allow the coexistence of IFRS-compliant and local GAAP-based reporting for supervisory purposes.
The data aim at covering 100% of the EU banking sector. However, owing to the introduction of the IFRS and their implementation for supervisory purposes, coverage was somewhat reduced in order to safeguard the quality of the data. In countries where IFRS accounting has been adopted for supervisory purposes, local GAAP-based reporting is generally still permitted, in particular for small or non-listed banks. Data on small banks which are not yet IFRS-compliant from countries in which the old and new accounting rules coexist for supervisory purposes were not collected in 2006 and 2007; however, in terms of the domestic banking assets of IFRS countries, the consequent reduction in coverage was small. In addition, some large and medium-sized banks were excluded from Germany's reporting population for 2007. Since these banks had already reported their solvency ratios according to the new common reporting framework, their solvency data could not be included. For the sake of consistency, the balance sheet and profit and loss data of the aforementioned banks were also excluded.
In order to provide a fully consolidated view of risk, the EU authorities report data on domestically controlled banks which have been consolidated across borders and sectors. In cross-border consolidation, data on branches and subsidiaries located (from the reporting country's point of view) outside the domestic market are included in the data reported by the parent institution. In cross-sector consolidation, branches and subsidiaries of banks that can be classified as other financial institutions are included. The definition of other financial institutions excludes insurance companies. The exclusion was maintained for all countries, even though the IFRS recommend that the insurance sector be included in the data.
Banks with total assets greater than 0.5% of the total consolidated assets of EU banks are defined as large domestic banks, while medium-sized banks have total assets of between 0.5% and 0.005% of these total consolidated assets. Banks with total assets of less than 0.005% of the total consolidated assets are considered small. In terms of absolute amounts, the threshold is defined on the basis of the total assets of the banking sector according to data collected in the preceding year. Therefore, for the data collection exercise in 2008 (concerning end-2007 data), the thresholds were computed on the basis of total assets of EUR 31,556 billion, data taken from the 2007 collection exercise. This figure comprises the total assets of both domestic banks and non-EU foreign subsidiaries in all EU Member States at the end of 2006.
Foreign banks are defined as subsidiaries and branches that are controlled by either an EU or a non-EU parent that is “foreign” from the reporting country's point of view. The data for these institutions are excluded from the data on the domestic banking sector and are aggregated under the heading “foreign banks”. The fact that foreign banks account for such a large share of the domestic banking sector in some EU countries justifies their separate analysis.
In the tables presenting the consolidated banking data, for some items it was not possible to separate the data for domestic and foreign banks. For these items, most of which refer to solvency indicators, the data are reported under the category “all banks”, which includes all domestic and foreign banks.
Non-performing assets and provisioning indicators (Table 6) should be interpreted with caution, since the definitions of impaired assets (non-performing and doubtful assets) and provisions differ between countries. Owing to data integrity issues, the table for the set of IFRS countries is not published.
Although the consolidated banking data aim to reflect banking sector developments at the aggregate EU level, additional information at the country level is also provided. When analysing the data presented in these tables, and especially when making comparisons between countries, it should be borne in mind that country-level indicators differ in terms of both coverage and definitions. In addition, differences in the structure of the banking sector across the EU should be taken into consideration. Finally, country-level information here may differ from that published in individual countries' reports on account of differences in the reporting populations.
Using the aggregated EU consolidated banking data presented in Tables 2 to 8, split between the two reporting groups (IFRS and non-IFRS), two sets of country-level tables have been produced: the first set (Tables 9 to 12) includes only domestic banks operating in each EU Member State, while the second (Tables 13 to 16) includes both domestic and foreign banks operating in each country (all banks). Tables 9 to 12 present a disaggregated view of the data used to compute the averages for the IFRS and non-IFRS countries reported in Tables 2 to 8. Country-level information is weighted in the computation of aggregate indicators (or averages). A small proportion of aggregate indicators do not include data from all IFRS reporting countries owing to the fact that certain reporting breakdowns are unavailable at the country level.
The country-level data in Tables 13 to 16 are presented for “all banks” (both domestic and foreign banks in each country). For this reason, the data are affected by double counting if cross-country aggregation is attempted and, moreover, are not directly comparable with the data presented in Tables 2 to 8. Nonetheless, given the extensive foreign ownership of the banks operating in some EU Member States, Tables 13 to 16 offer a more realistic picture of country-level banking developments in these countries.