## Figure 1.7. Balance-Sheet Leverage Metrics by Sector and Region

## Source details

**Canonical URL:** [Figure 1.7. Balance-Sheet Leverage Metrics by Sector and Region](https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-7.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-7.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-7.pdf.json)

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### Overview
- Visualizes balance-sheet leverage metrics by sector and region from 2000 through 2018 (or longest sample available).
- Regions shown: United States, Euro Area, Other Advanced Economies, Other Emerging Markets, China.
- Sectors shown: Nonfinancial corporations; Households; Sovereigns; Banks; Asset managers; Insurance; Other; External (where available).

### Measurement and indicators (as stated)
- Corporate sector:
  - Net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA)
  - EBITDA to assets
  - Interest coverage ratios
  - Corporate debt to GDP
- Households sector:
  - Household debt-to-GDP
  - Debt-service ratios (nonfinancial sector for emerging market economies)
- Sovereign sector:
  - Gross public debt to GDP
- Banking sector:
  - Equity to assets
  - Tier 1 capital ratio
- External sector:
  - External debt to GDP
- Insurance sector:
  - Assets to equity
  - Credit to assets
  - Portfolio fraction of bonds rated BBB or lower
  - Default probabilities within the next three years
- Asset management and other nonbank financial sectors:
  - Assets to equity
  - Credit to assets
  - Incurred debt to assets
  - Loans to assets
- “Other” category:
  - Includes broker-dealers, securitization companies, finance companies, funding companies, and holding companies depending on data availability (not all sectors are available for all countries).

### Shading legend and interpretation
- Red shading: value in the top 20 percent of pooled samples of advanced or emerging market economies for nonfinancial corporations, households, and the external sector, and of all countries for the remaining sectors shown in the figure from 2000 through 2018 (or longest sample available).
- Dark green shading: values in the bottom 20 percent.
- Indicators are aggregated within regions using GDP-weighted averages and within sectors using equal-weighted averages.
- Within sectors, indicators for existing subsectors are aggregated using assets to GDP as weights.

### Regional and country group definitions
- Other systemically important advanced economies include: Australia, Canada, Denmark, Hong Kong SAR, Japan, Korea, Norway, Singapore, Sweden, Switzerland, and the United Kingdom.
- Other systemically important emerging economies include: Brazil, India, Mexico, Poland, Russia, and Turkey.

### Time axis labels as shown
- 2000010203040506070809101112131415161718
- 2000010203040506070809101112131415161718

*Sources: Bank of Japan; Bloomberg Finance L.P.; China Insurance Regulatory Commission; European Central Bank; Haver Analytics; IMF, Financial Soundness Indicators; S&P Capital Market Intelligence; University of Singapore Risk Institute; and IMF staff calculations.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-7.pdf_