Further, retail deposits cover a substantial portion (75%) of the total stable funding needs (60% for European banks as a whole). Assets Consolidated assets saw growth of 2.1% in 2022, below levels seen in 2020-2021 (3.8% on average). However, the drop in financial assets in Spain (by 5.4% to March 2023) is noteworthy, while assets abroad (expressed in euro) rose (by 7.2% to March 2023). The latter increased to represent 53.7% of the total – 4.3 pp more than one year ago (32% in 2008). Much of the decline in financial assets in Spain is owing to the reduction in balances held with central banks (-31.9%) and, to a lesser extent, to the dip in loans to the resident private sector (-2.5%). Meanwhile, the increase in financial assets abroad was the result of growth in lending to the resident private sector in third countries (10.3%) and in debt securities (16%), against the background of a depreciating euro.9 The pass-through of monetary policy interest rate rises to average rates on the stock of loans took place gradually over the last 16 months, although it quickened in early  4  Standing at 54.1% of total consolidated assets at end-2022, a rise of 14.7% since 2019. 5  Interbank funding and financing from other financial corporations, as well as marketable debt instruments (whose share of the sector’s funding had dropped in recent years) increased their weight in liabilities by around 2 pp in 2022.
In particular, the creation of a fully mutualised European deposit insurance scheme would boost both public and market confidence. It would also contribute to greater risk-sharing in the euro area, and thus help reduce potential fragmentation episodes. 15  From highs of 119.9% and 85.6% of GDP, respectively, in 2010, to 72% and 53% at end-2022. 16  The 3-month EURIBOR is the main benchmark rate for non-financial corporations’ funding costs. 17  These figures are obtained drawing on different hypotheses as to the percentage of debt expiring and renewed in the short term. The top-end figure (6.8 pp) is the effect of all debt expiring in the short term being renewed. 18  A firm is considered to be under high financial pressure when the ratio of (gross operating profit + financial revenue) to financial costs is less than one. 19  The 12-month EURIBOR is the main benchmark rate for households’ funding costs. 20  The net interest burden is considered to be high when the ratio of (debt service expenses - interest income from deposits) to household income is over 40%. 7  On a global scale, an in-depth analysis is also needed of the recent banking turmoil from a regulatory and supervisory standpoint. The Federal Reserve System has now published an assessment of the reasons for the recent events in the United States. On the Financial Stability Committee and the Basel Committee on Banking Supervision, we have embarked on an analysis of the recent developments, to enable lessons to be drawn.