Part A: Global environment

Chart A.25 UK and euro-area banks’ equity prices have come under particular pressure Sources: SNL Financial, Thomson Reuters Datastream and Bank calculations. (a) Weighted by 2015 assets. (b) Ten largest banks based on 2015 total assets in Austria, Belgium, France, Germany and the Netherlands. UK and euro-area bank equity indices (a)

Chart A.26 Euro-area government yields have fallen further since the referendum Sources: Thomson Reuters Datastream and Bank calculations. Change in selected ten-year euro-area government bond yields since December 2015 Report

Chart A.27 Some periphery euro-area banks have both large NPLs and low CET1 Sources: SNL Financial and Bank calculations. (a) Data as at 2015 Q4. (b) Data for deferred tax assets (DTAs) include some DTAs which are not counted by banks towards their regulatory capital. As such, these calculations may overestimate slightly the amount of DTAs counted as capital. European banks’ CET1 ratio versus non-performing loans (a)

Chart A.28 Lending-deposit spreads on new business are falling in the euro area Sources: ECB and Bank calculations. (a) Data up to April Dashed lines show average spreads since Spreads between rates on euro-area banks’ new lending and new deposits (a)

Chart A.29 UK banks’ exposures to EMEs remain sizable, but are decreasing in the euro-area periphery Sources: BIS consolidated banking statistics, SNL Financial and Bank calculations. (a) End of year Q4 data. (b) Foreign claims of domestically owned banks on an ultimate risk basis. (c) Excludes claims on non-bank financial institutions due to a lack of data prior to (d) Consists of Greece, Ireland, Italy, Portugal and Spain. UK banks’ exposures to selected countries and regions (a)(b)(c)

Chart A.30 Emerging market currencies and some risky asset prices have fallen since the UK referendum Sources: Bloomberg, Standard & Poor’s (S&P), Thomson Reuters Datastream and Bank calculations. (a) Average of the ten largest economies in each region according to their PPP-adjusted GDP. (b) Denominated in US dollars. (c) JPMorgan Emerging Market Bond Index Global, denominated in US dollars. Changes in emerging market exchange rates to the US dollar (a) and prices of other risky assets

Chart A.31 Private sector debt levels have risen over 2015 in a number of countries Source: BIS total credit statistics. (a) End of year Q4 data. Non-financial private sector debt to GDP (a)