Bank Liabilities Survey - 2015 Q1

This quarterly survey of banks and building societies is aimed at improving our understanding of the role of lenders’ liabilities and capital in driving credit and monetary conditions.
Published on 08 April 2015

The 2015 Q1 survey was conducted between 13 February and 6 March 2015.


  • UK banks and building societies reported that total funding volumes had decreased in the three months to early March 2015, driven by slight falls in both retail and ‘other’ funding. Lenders expected total funding volumes to be broadly unchanged in 2015 Q2.
  • Spreads — relative to appropriate reference rates — on retail deposits were reported to have fallen in 2015 Q1, while spreads on ‘other’ funding fell slightly. Lenders expected spreads to pick up in Q2.
  • Lenders reported that the supply of deposits from households had pushed down slightly on the volume of deposits raised in Q1. Firms’ supply of deposits was broadly unchanged in Q1. The supply of deposits from households and PNFCs was expected to be broadly unchanged in Q2.
  • The proportion of wholesale market funding accounted for by long-term instruments was broadly unchanged in Q1. Lenders did, however, expect the proportion of long-term issuance to increase in Q2, driven by regulation and price considerations.


  • Lenders reported that their total capital levels increased significantly in Q1, having also increased significantly in the previous three quarters. They expected total capital levels to rise significantly again in 2015 Q2.
  • Lenders cited regulatory drivers as the most significant factor increasing their demand for capital in Q1. Regulation had also slightly increased lenders’ demand for AT1 and T2 capital instruments, relative to common equity.

Transfer pricing

  • Lenders again reported that the internal price charged to business units to fund the flow of new loans (the ‘transfer price’) fell in 2015 Q1, reflecting falls in both reference rates and funding spreads. Lenders expected a further slight fall in the ‘transfer price’ over the next quarter.

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