## Figure 1.21. Banking System Exposures to the Nonfinancial Sector

## Source details

**Canonical URL:** [Figure 1.21. Banking System Exposures to the Nonfinancial Sector](https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-21.pdf)

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- [Markdown version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-21.pdf.md)
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### Overview and key messages
- Banks are exposed to countries with high debt-service ratios.Asset quality could deteriorate as a result.
- ... and could spill over to banks.Sovereign risk has risen in Italy ...

### Panel 1 — Private Nonfinancial Sector Debt-Service Ratios and Debt Levels, 2017:Q4
- Debt-service ratio (percentage point deviation from each country’s mean)
- Borrowing from banks (trillions of U.S. dollars)
- Axis/scale markers preserved from figure: 0105040302060

### Panel 2 — Private Nonfinancial Sector Debt-Service Ratios and Nonperforming Loans, 2006:Q1–2017:Q4
- Nonfinancial sector debt-service ratio (percentage point deviation from each country’s mean)
- Change in nonperforming loan ratio (percentage points, lagged one year)
- Axis/scale markers preserved from figure: –4–2 –4 4 –3 –2 –1 0 1 2 3 0246
- Time markers preserved from figure: 2015161718
- Country labels shown in figure (ISO country codes as in source): Portugal, Italy, Spain, GBR, USA, CHE, FRA, DEU, IRL, GRC, ESP, BEL, PRT, ITA, KOR, JPN

### Panel 3 — Ten-Year Sovereign Spreads to German Government Bonds (Basis points)
- Domestic sovereign CDS spread (basis points)
- Axis/scale markers preserved from figure: 8 0 50 100 150 200 250 300 350 400 450
- Country labels shown in figure (ISO country codes as in source): HKG, TUR, CHN, CAN, BEL, RUS, FRA, USA, ITA, GBR, BRA, DEU, JPN, DNK

### Panel 4 — Banking System Exposure to Domestic Governments, 2018
- Percent of assets (size of the circles is proportional to the banking systems’ exposure to their domestic government (relative to assets))
- Axis/scale markers preserved from figure: 0 2 4 6 8 0 2 4 6 8 10 12 14 Percent of assets
- Country labels shown in figure (ISO country codes as in source): GBR, USA, CHE, FRA, DEU, IRL, GRC, ESP, BEL, PRT, ITA, KOR, JPN

### Data sources and notes (as presented in figure)
- Sources: Bank for International Settlements; Bloomberg Finance L.P.; Haver Analytics; IMF, Financial Soundness Indicators; national central banks; and IMF staff calculations.
- Note: Panel 2 presents historical data for a sample of 17 advanced economies. Panel 4 is based on the latest available data in 2018. The size of the circles is proportional to the banking systems’ exposure to their domestic government (relative to assets). Data labels in the figure use International Organization for Standardization (ISO) country codes. CDS = credit default swap.

*Source: figure1-21*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-21.pdf_