Bank Liabilities Survey - 2015 Q3

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 13 October 2015

The 2015 Q3 survey was conducted between 24 August and 11 September 2015.


  • UK banks and building societies reported that total funding volumes had increased slightly in the three months to mid-September 2015. Within the total, lenders reported that retail deposit funding had increased, while ‘other’ funding, which includes wholesale debt funding and wholesale deposits, had increased slightly. Lenders expected total funding volumes to fall in 2015 Q4.
  • Spreads — relative to appropriate reference rates — on ‘other’ funding were reported to have increased significantly in 2015 Q3, while spreads on retail deposits had increased slightly. Funding spreads were expected to be broadly flat in Q4.
  • Lenders reported that the supply of deposits from households had pushed up the volume of deposits raised in Q3, and was expected to push up a little in Q4. The supply of deposits from private non-financial corporations was little changed in Q3, and was expected to be little changed in Q4 also.
  • The proportion of wholesale market funding accounted for by long-term instruments increased significantly in Q3, with regulatory drivers contributing significantly to lenders’ demand for long-term wholesale funding. The proportion of long-term instruments was anticipated to be little changed in Q4.


  • Lenders reported that their total capital levels increased in 2015 Q3, having increased significantly in the previous five quarters. A further slight increase in total capital levels was expected in Q4.
  • Lenders cited regulatory drivers as the main factor pushing up their demand for capital in Q3. Regulation, investor demand and, to a lesser extent, market conditions, were all reported to have increased lenders’ demand for Additional Tier 1 and Tier 2 capital instruments, relative to common equity, in Q3.

Transfer pricing

  • Lenders reported that the internal price charged to business units to fund the flow of new loans (the ‘transfer price’) increased significantly in 2015 Q3, driven by significant increases in wholesale funding spreads. Lenders expected a slight fall in the ‘transfer price’ over the next quarter.

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