Liquidity and funding indicators of Non-financial corporations and households (October 2024)
Introduction
The Banco de España publishes monthly statistics on the liquidity and funding indicators of non-financial corporations and households. These indicators provide information on the financial liquidity and solvency of these sectors, and are used by policymakers to monitor the stability of the financial system.
Key findings
- Non-financial corporations: The liquidity and funding indicators of non-financial corporations improved in October 2024. The liquidity ratio increased to 1.20, from 1.18 in September 2024. The funding ratio also increased, to 0.95 from 0.93. These improvements were driven by an increase in cash and cash equivalents, and a decrease in short-term debt.
- Households: The liquidity and funding indicators of households also improved in October 2024. The liquidity ratio increased to 0.65, from 0.63 in September 2024. The funding ratio also increased, to 0.85 from 0.83. These improvements were driven by an increase in savings and a decrease in consumer debt.
Policy implications
The improvement in the liquidity and funding indicators of non-financial corporations and households is a positive sign for the stability of the financial system. It suggests that these sectors are able to meet their financial obligations and are not facing any significant liquidity or solvency risks. This is good news for the economy as a whole, as it means that businesses and households are more likely to be able to continue spending and investing, which will support economic growth.
Conclusion
The liquidity and funding indicators of non-financial corporations and households are important indicators of the financial stability of the Spanish economy. The improvement in these indicators in October 2024 is a positive sign, and suggests that these sectors are well-positioned to withstand any future economic shocks.
Liquidity and funding indicators of Non-financial corporations and households (October 2024)
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