Bank Liabilities Survey - 2019 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 18 April 2019

The 2019 Q1 survey was conducted between 4 and 22 March 2019.


  • UK banks and building societies reported that their total funding volumes were unchanged in the three months to end-February 2019 (Q1). Within the total, ‘other’ funding — which includes wholesale debt funding, wholesale deposits and funding via central bank operations — was also reported to be unchanged. Retail deposit funding was reported to have slightly decreased (Chart 1). Lenders expected total funding volumes to significantly increase in the three months to end-May 2019 (Q2).
  • Spreads — relative to appropriate reference rates — on ‘other’ funding were reported to have decreased slightly in Q1, while spreads on retail deposits were reported to have been unchanged (Chart 2). Lenders expected spreads on ‘other’ funding and retail deposits spreads to increase over the next quarter. 
  • Lenders reported that the supply of deposits from households increased in Q1, and no change was expected over the next quarter. The supply of deposits from private non-financial corporates was reported to be unchanged in Q1, and was expected to increase slightly in Q2 (Chart 3).
  • The proportion of wholesale market funding accounted for by long-term instruments was reported to have increased in Q1 and was expected to increase significantly in Q2. 
  • Investor demand for banks’ wholesale debt was reported as unchanged in Q1 (Chart 4). Lenders expected a significant increase in the demand for wholesale debt in Q2.


  • The average cost of capital was reported to be unchanged in Q1 and was expected to increase slightly in Q2. 
  • Lenders reported that their total capital levels decreased slightly in Q1, and were expected to increase in Q2.

Transfer pricing

  • Lenders reported that the internal price charged to business units to fund the flow of new loans (the ‘transfer’ price) had increased in Q1 (Chart 5). This was reported to have been driven by a significant increase in long-term wholesale funding spreads (Chart 6). Lenders expected a slight increase in the transfer price in Q2.

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