Bank Liabilities Survey - 2026 Q2

Overview

Developments in lenders’ balance sheets are of key interest in our assessment of economic conditions. Changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending. We use this quarterly survey of banks and building societies to improve our understanding of the role lenders’ liabilities and capital play in driving credit and monetary conditions. We ask lenders about the past three months and the coming three months. The survey covers developments in:

the volume and price of bank funding;

the loss-absorbing capacity of banks as determined by their capital positions; and

the internal price charged to business units within individual banks to fund the flow of new loans (sometimes referred to as the ‘transfer price’).

This report presents the results of the 2026 Q2 survey. Lenders were asked to report changes in the three months to end-May 2026 (Q2), relative to the period between December and February, and expected changes in the three months to end-August 2026 (Q3), relative to the period between March and May. The survey was conducted between 26 May and 12 June 2026. Any impact from more recent developments will therefore not be captured.

The results are based on lenders’ own responses to the survey, and are reported as net percentage balances. Changes in the balances are described as an ‘increase’ if greater than 10 in absolute terms, as ‘slight’ if between 5 and 10 and as ‘unchanged’ if less than 5. The results do not necessarily reflect our views on developments in bank liabilities. You can read a guide to interpreting the survey and copies of the questionnaires at the end of this page.

You can also find more information about the survey in the 2013 Q1 Quarterly Bulletin article The Bank of England Bank Liabilities Survey.

The 2026 Q3 Bank Liabilities Survey will be published on 8 October 2026.

Funding

Lenders reported that total funding volumes increased in the three months to end-May 2026 (Q2) and were expected to increase in the three months to end-August 2026 (Q3) (Chart 1).

Within the total, lenders reported that ‘other’ funding – which includes wholesale debt funding, wholesale deposits and funding via central bank operations – increased and retail deposit funding increased.

Lenders reported that the cost of funding – relative to appropriate reference rates – on ‘other’ funding and retail deposits increased in Q2 (Chart 2). These costs were expected to increase for ‘other’ funding and retail deposits in Q3.

Lenders reported that the supply of deposits from households increased in Q2, and was expected to increase in Q3 (Chart 3). The supply of deposits from private non-financial corporations (PNFCs) decreased in Q2, and was expected to decrease in Q3.

Lenders reported that the proportion of wholesale market funding accounted for by long-term instruments increased in Q2, and was expected to increase in Q3.

Lenders reported that investor demand for wholesale bank debt from both UK and non-UK investors decreased slightly in Q2 (Chart 4). The demand from both UK and non-UK investors was expected to decrease slightly in Q3.

Chart 1: Funding volumes (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.

(b) Question: ‘How have funding volumes changed?’.

(c) A positive balance indicates an increase in funding volumes.

Chart 2: Funding spreads (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.

(b) Question: ‘How has the average cost of funding changed?’.

(c) A positive balance indicates an increase in funding costs relative to appropriate reference rates.

Chart 3: Supply of deposits (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex

(b) Question: ‘How has the supply of deposits from the following sources changed?’.

(c) A positive balance indicates an increase in the supply of deposits.

Chart 4: Investors’ demand for UK bank debt (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamonds show the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.

(b) Question: ‘How has the demand for wholesale debt from the following investors changed?’.

(c) A positive balance indicates an increase in investors’ demand for banks’ wholesale debt.

Capital

Lenders reported that total capital levels increased in Q2, and were expected to decrease slightly in Q3 (Chart 5).

Lenders reported that the average cost of capital decreased in Q2, and was expected to increase in Q3.

Chart 5: Total capital levels (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamond shows the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.

(b) Question: ‘How has your total capital changed? What are your plans for the next three months?’.

(c) A positive balance indicates an increase in total capital.

Transfer pricing

Lenders reported that the internal price charged to business units to fund the flow of new loans – sometimes referred to as the ‘transfer price’ – increased in Q2, and was expected to decrease in Q3 (Chart 6).

Chart 6: Transfer prices (a) (b) (c)

(a) Net percentage balances are calculated by weighting together the responses of those lenders who answered the question. The aqua bars show the responses over the previous three months. The orange diamond shows the expectation over the next three months. Expectations data can be used as an indicator of the potential direction and magnitude of the change expected in the next quarter, but should not be treated as a realised outturn. Previous expectations balances are available in full in the annex.

(b) Question: ‘How has the marginal absolute cost of providing funds to business units changed (sometimes referred to as the ’transfer price’)?’.

(c) A positive balance indicates an increase in transfer prices.

How to interpret this survey

The results are based on lenders’ own responses to the survey. They do not necessarily reflect our views on developments in bank liabilities. To calculate aggregate results, each lender is assigned a score based on their response. Lenders who report that conditions have changed ‘a lot’ are assigned twice the score of those who report that conditions have changed ‘a little’. These scores are then weighted by lenders’ market shares. The results are analysed by calculating ‘net percentage balances’ – the difference between the weighted balance of lenders reporting that, for example, demand was higher/lower or terms and conditions were tighter/looser. The net percentage balances are scaled to lie between (+/-)100.

In this report, changes in balances are described as an ‘increase’ if greater than 10 in absolute terms, as ‘slight’ if between 5 and 10 and as ‘unchanged’ if less than 5.

Annexes

This annex provides further details of the questions referred to in the main text.Terminology and general definitionsThe following terms are used within the report:Cost – the cost to the issuing bank of raising money via the specified form of funding.Demand factor – a factor that influences a bank’s need or desire for a particular volume of funding or capital, holding constant any supply factors.footnote [1] These factors include price terms, such as the interest rate paid, spread charged or yield; non-price terms or market liquidity; and regulatory factors.Supply factors – these typically include market access (ie whether markets are open or shut to issuers of debt) and investor demand in the case of wholesale debt finance or capital, as well as changing supply, unrelated to changes in prices, on the part of depositors for retail deposits.Section 1 – FundingThis section refers to the following broad funding types:Total funding – all wholesale and retail funding.Retail funding – funding raised by banks in the form of deposits from households and private non‑financial corporations (PNFCs).Other funding – funding in wholesale public debt capital markets, private placement markets and directly from central bank operations.It also refers to the following funding instruments:Short-term fundingCertificate of deposit – a time deposit, with maturity of less than 12 months, in the form of a promissory note that is issued by banks and can be traded in secondary markets.Commercial paper – a discount instrument security with maturity of less than 12 months, which can be traded in secondary markets.Short-term repo/securities lending – funding raised via the sale and subsequent repurchase of a security or similar transaction, with a term of less than 12 months.Unsecured borrowing including deposits from other financial companies (OFCs) and interbank deposits – funding raised via deposits placed by other financial corporations and other banks.Long-term fundingLong-term repo/securities lending – funding raised via the sale and subsequent repurchase of a security or similar transaction, with a term of greater than 12 months.Structured products: structured notes – debt instruments based on derivatives which pay coupons and a final redemption value linked to asset prices.Structured products: other – other structured debt instruments whose payout or structure is related to another market indicator or asset price.Senior unsecured debt – debt securities issued by banks that pay a coupon, along with a final redemption payment.Asset-backed securities – debt securities issued by special purpose vehicles, but ultimately ‘sponsored’ by banks (or other asset originators), that pay a coupon along with a final redemption payment. The security is backed by, and cash flows come from, assets such as residential mortgage loans, commercial mortgage loans or credit card receivables.Covered bonds – debt securities issued by banks that pay a coupon, along with a final redemption payment. The security has an associated ‘cover pool’ of assets, such that the investor has dual recourse to both the issuer and the ‘cover pool’.Section 2 – CapitalThe following terms are used within this section:Total capital – the total level of capital.Cost of capital – the average cost of capital to the issuing institution.Common equity Tier 1 capital – paid-up share capital/common stock (issued and fully paid ordinary shares/common stock) and disclosed reserves created or increased by appropriations of retained earnings or other surplus (for example, share premiums, retained profit, general reserves and legal reserves).Additional Tier 1 capital – going concern capital that is not included in common equity Tier 1 (for example, perpetual non‑cumulative preference shares).Tier 2 capital – subordinated instruments that meet the criteria for Tier 2 (and not Tier 1) capital and certain loan loss provision.This section refers to how various factors might affect a bank’s actual and desired level of capital. These factors should be interpreted as follows:Direct effectsDirect effects of profits, losses, deductions and charges (UK‑specific/non‑UK specific) – how the balance of profits, losses, deductions and charges have affected the total level of capital. Deductions are defined as regulatory changes to the definition of capital: for example if a regulator defined capital more narrowly, this would reduce a bank’s total capital. The contribution of such factors is identified within the United Kingdom and outside the United Kingdom.Factors that have affected banks’ demand for capitalChanging economic outlook – if a bank expects the economic outlook to deteriorate then it might want to hold a higher level of total capital.Strategic decisions to increase/reduce risk – strategic decisions to change the size of a bank’s capital buffer above the regulatory requirement, eg if a bank decided to hold a larger capital buffer it would require more capital.Regulatory drivers – if regulatory authorities increased required capital levels, then a bank may need to raise more capital.Changes in size of balance sheet – if a bank expects the size of its balance sheet to increase, then it might want to hold a higher level of capital.Changes in riskiness of assets – this captures changes to the riskiness of assets, or their risk weighting. If regulatory risk weightings were increased, then a bank might need to increase its level of capital. Additionally, if a bank chose to hold riskier assets, its demand for capital might increase.Supply factorsMarket conditions – covers the effects of market access and investor demand.Investor pressure to change volume of capital – changes due to investor concerns about the ability of the respondent to absorb losses.The section also refers to how various factors might affect the composition of a bank’s capital. This question asks about whether economic conditions, strategic decisions to change the mix of capital, regulatory drivers, market conditions or investor demand have contributed positively or negatively to the proportion of total capital accounted for by additional Tier 1 and Tier 2 capital, as opposed to common equity Tier 1 capital.Section 3 – Transfer pricingThe following terms are used within this section:Average absolute cost – this can be interpreted as the cost to a bank of funding the stock of loans.Marginal absolute cost – this can be interpreted as the cost of funding the flow of new loans, rather than the average cost of funding the stock of existing loans. This is sometimes referred to as the ‘transfer price’.Swaps or reference rates – the transfer price can typically be broken down into the spreads on selected debt instruments, the reference rates to which those spreads are quoted, and the cost of swapping fixed and floating-rate payments. This question identifies the contribution to the transfer price from the latter two. The options specified in the survey vary by question, although respondents have the option to include additional comments where relevant. The options specified in the survey vary by question, although respondents have the option to include additional comments where relevant.

This annex provides further details of the questions referred to in the main text.

The following terms are used within the report:

Cost – the cost to the issuing bank of raising money via the specified form of funding.

Demand factor – a factor that influences a bank’s need or desire for a particular volume of funding or capital, holding constant any supply factors.footnote [1] These factors include price terms, such as the interest rate paid, spread charged or yield; non-price terms or market liquidity; and regulatory factors.

Supply factors – these typically include market access (ie whether markets are open or shut to issuers of debt) and investor demand in the case of wholesale debt finance or capital, as well as changing supply, unrelated to changes in prices, on the part of depositors for retail deposits.

This section refers to the following broad funding types:

Total funding – all wholesale and retail funding.

Retail funding – funding raised by banks in the form of deposits from households and private non‑financial corporations (PNFCs).

Other funding – funding in wholesale public debt capital markets, private placement markets and directly from central bank operations.

It also refers to the following funding instruments:

Certificate of deposit – a time deposit, with maturity of less than 12 months, in the form of a promissory note that is issued by banks and can be traded in secondary markets.

Commercial paper – a discount instrument security with maturity of less than 12 months, which can be traded in secondary markets.

Short-term repo/securities lending – funding raised via the sale and subsequent repurchase of a security or similar transaction, with a term of less than 12 months.

Unsecured borrowing including deposits from other financial companies (OFCs) and interbank deposits – funding raised via deposits placed by other financial corporations and other banks.

Long-term repo/securities lending – funding raised via the sale and subsequent repurchase of a security or similar transaction, with a term of greater than 12 months.

Structured products: structured notes – debt instruments based on derivatives which pay coupons and a final redemption value linked to asset prices.

Structured products: other – other structured debt instruments whose payout or structure is related to another market indicator or asset price.

Senior unsecured debt – debt securities issued by banks that pay a coupon, along with a final redemption payment.

Asset-backed securities – debt securities issued by special purpose vehicles, but ultimately ‘sponsored’ by banks (or other asset originators), that pay a coupon along with a final redemption payment. The security is backed by, and cash flows come from, assets such as residential mortgage loans, commercial mortgage loans or credit card receivables.

Covered bonds – debt securities issued by banks that pay a coupon, along with a final redemption payment. The security has an associated ‘cover pool’ of assets, such that the investor has dual recourse to both the issuer and the ‘cover pool’.

The following terms are used within this section:

Total capital – the total level of capital.

Cost of capital – the average cost of capital to the issuing institution.

Common equity Tier 1 capital – paid-up share capital/common stock (issued and fully paid ordinary shares/common stock) and disclosed reserves created or increased by appropriations of retained earnings or other surplus (for example, share premiums, retained profit, general reserves and legal reserves).

Additional Tier 1 capital – going concern capital that is not included in common equity Tier 1 (for example, perpetual non‑cumulative preference shares).

Tier 2 capital – subordinated instruments that meet the criteria for Tier 2 (and not Tier 1) capital and certain loan loss provision.

This section refers to how various factors might affect a bank’s actual and desired level of capital. These factors should be interpreted as follows:

Direct effects of profits, losses, deductions and charges (UK‑specific/non‑UK specific) – how the balance of profits, losses, deductions and charges have affected the total level of capital. Deductions are defined as regulatory changes to the definition of capital: for example if a regulator defined capital more narrowly, this would reduce a bank’s total capital. The contribution of such factors is identified within the United Kingdom and outside the United Kingdom.

Factors that have affected banks’ demand for capital

Changing economic outlook – if a bank expects the economic outlook to deteriorate then it might want to hold a higher level of total capital.

Strategic decisions to increase/reduce risk – strategic decisions to change the size of a bank’s capital buffer above the regulatory requirement, eg if a bank decided to hold a larger capital buffer it would require more capital.

Regulatory drivers – if regulatory authorities increased required capital levels, then a bank may need to raise more capital.

Changes in size of balance sheet – if a bank expects the size of its balance sheet to increase, then it might want to hold a higher level of capital.

Changes in riskiness of assets – this captures changes to the riskiness of assets, or their risk weighting. If regulatory risk weightings were increased, then a bank might need to increase its level of capital. Additionally, if a bank chose to hold riskier assets, its demand for capital might increase.

Market conditions – covers the effects of market access and investor demand.

Investor pressure to change volume of capital – changes due to investor concerns about the ability of the respondent to absorb losses.

The section also refers to how various factors might affect the composition of a bank’s capital. This question asks about whether economic conditions, strategic decisions to change the mix of capital, regulatory drivers, market conditions or investor demand have contributed positively or negatively to the proportion of total capital accounted for by additional Tier 1 and Tier 2 capital, as opposed to common equity Tier 1 capital.

The following terms are used within this section:

Average absolute cost – this can be interpreted as the cost to a bank of funding the stock of loans.

Marginal absolute cost – this can be interpreted as the cost of funding the flow of new loans, rather than the average cost of funding the stock of existing loans. This is sometimes referred to as the ‘transfer price’.

Swaps or reference rates – the transfer price can typically be broken down into the spreads on selected debt instruments, the reference rates to which those spreads are quoted, and the cost of swapping fixed and floating-rate payments. This question identifies the contribution to the transfer price from the latter two.

The options specified in the survey vary by question, although respondents have the option to include additional comments where relevant.

The options specified in the survey vary by question, although respondents have the option to include additional comments where relevant.

The options specified in the survey vary by question, although respondents have the option to include additional comments where relevant.

To calculate aggregate results, each lender is assigned a score based on their response. Lenders who report that funding conditions have changed ‘a lot’ are assigned twice the score of those who report that conditions have changed ‘a little’. These scores are then weighted by lenders’ market shares. The results are analysed by calculating 'net percentage balances' – the difference between the weighted balances of lenders reporting that, for example, funding volumes had increased/decreased. The net percentage balances are scaled to lie between (+/-)100. This annex reports the net percentage balance of respondents for each question in the questionnaire.Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).Where the survey balances are discussed, descriptions of an ‘increase’ refer to a net percentage balance greater than 10 in absolute terms, and a ‘slight’ change refers to a net percentage balance of between 5 and 10 in absolute terms. Survey balances between 0 and 5 in absolute terms are described as unchanged. The 2019 Q2 and earlier reports also described changes greater than 20 in absolute terms as ‘significant’.The first Bank Liabilities Survey was conducted in 2012 Q4. A full set of results is available in an Excel file in the ‘Related documents’ section.Net percentage balances (a)20252026Q1Q2Q3Q4Q1Q2Funding1. How have funding volumes changed? (b)Total fundingPast three months8.240.435.431.19.529.4Next three months24.240.427.513.325.321.5Retail deposit fundingPast three months19.936.42.629.310.840.4Next three months43.824.939.0-10.024.712.5Other fundingPast three months-5.650.221.212.5-18.617.9Next three months10.929.620.711.917.734.72. How has the average cost of funding changed? (c)Retail deposit spreads relative to appropriate reference rate(s)Past three months9.827.815.833.7-3.640.4Next three months17.00.28.436.010.311.0Other funding spreads relative to appropriate reference rate(s)Past three months25.410.8-26.812.8-21.312.2Next three months19.10.1-8.40.231.014.5Deposits3. Factors contributing to changes in household deposit volumes: (d)Demand factorsRates paid relative to the cost of other liabilitiesPast three months11.113.9-9.9-21.2-0.311.0Next three months17.019.1-9.1-21.20.6-0.4Non-price termsPast three months11.60.00.00.01.06.7Next three months17.50.00.00.00.00.0Market share objectivesPast three months13.813.78.117.715.915.4Next three months15.22.817.58.311.18.6Regulatory driversPast three months2.12.82.82.02.00.0Next three months8.02.8-2.5-3.33.00.0Funding structure objective (excluding those driven by regulation)Past three months3.821.51.019.26.814.8Next three months3.421.59.619.415.313.9Supply factors Changing supply of deposits by households, unrelated to rates paid or non-price terms on those depositsPast three months48.332.8-8.223.10.221.4Next three months39.120.43.6-7.426.014.74. Factors contributing to changes in private non-financial corporations (PNFCs) deposit volumes:Demand factorsRates paid relative to the cost of other liabilitiesPast three months10.8-1.3-2.3-2.2-9.613.2Next three months8.3-3.4-2.3-2.2-0.922.3Non-price termsPast three months7.05.85.85.85.75.9Next three months7.05.85.85.85.75.9Market share objectivesPast three months9.111.518.919.920.019.8Next three months15.711.518.919.940.428.9Regulatory driversPast three months0.00.00.00.00.00.0Next three months0.00.00.00.00.00.0Funding structure objective (excluding those driven by regulation)Past three months4.62.72.1-2.7-3.812.2Next three months11.52.72.13.1-3.818.3Supply factors Changing supply of deposits by PNFCs, unrelated to rates paid or non-price terms on those depositsPast three months-8.43.5-14.521.9-19.9-17.0Next three months-1.8-13.73.0-8.28.7-17.05. Factors contributing to changes in other financial corporations (OFCs) deposit volumes:Demand factorsRates paid relative to the cost of other liabilitiesPast three months14.214.214.214.213.821.8Next three months14.214.214.214.213.812.5Non-price termsPast three months0.00.00.00.00.00.0Next three months0.00.00.00.00.00.0Market share objectivesPast three months12.012.012.00.00.00.0Next three months12.012.012.00.00.00.0Regulatory driversPast three months0.00.00.012.00.00.0Next three months0.00.00.012.00.00.0Funding structure objective (excluding those driven by regulation)Past three months4.67.5-7.57.6-8.529.8Next three months20.30.00.00.01.020.5Supply factorsChanging supply of deposits by OFCs, unrelated to rates paid or non-price terms on those depositsPast three months0.00.00.00.00.00.0Next three months0.00.00.00.00.00.0Wholesale debt funding6. How have the proportions of wholesale market funding (excluding central bank operations) raised through the following sources changed over the past three months? (e)Proportion of private/public issuancePast three months-22.7-16.1-14.7-21.2-40.8-20.5Next three months-17.6-18.3-14.7-26.4-7.8-1.3Proportion of long-term/short-term issuancePast three months14.4-0.120.75.96.712.3Next three months10.013.313.121.218.216.4Short-term fundingCertificates of DepositPast three months13.37.0-14.35.020.6-2.9Next three months-6.9-12.94.410.014.710.9Commercial paperPast three months-6.3-13.52.725.434.311.9Next three months12.412.5-7.510.59.516.6Short-term repo/securities lendingPast three months0.7-4.96.315.516.728.7Next three months1.42.214.910.322.217.0Unsecured borrowing including deposits from OFCs and interbank depositsPast three months13.011.3-4.00.47.222.3Next three months17.618.011.29.73.13.7Long-term fundingLong-term repo/securities lendingPast three months16.212.337.77.023.710.3Next three months22.15.424.19.75.710.3Structured products: structured notesPast three months-16.115.516.416.6-16.716.8Next three months0.01.016.4-16.616.717.8Structured products: otherPast three months0.00.00.00.00.00.0Next three months0.00.00.00.00.00.0Senior unsecured debtPast three months36.624.615.78.617.70.2Next three months8.37.16.05.2-7.17.2Asset-backed securities (excluding covered bonds)Past three months-6.0-7.23.79.26.30.9Next three months4.96.2-6.00.02.37.5Covered bondsPast three months16.7-6.8-8.97.60.08.8Next three months8.56.811.0-5.04.9-6.67. How has demand for wholesale debt from the following investors changed? (f)All investorsPast three months29.413.033.418.117.9-5.8Next three months0.25.67.95.8-16.7-7.6UK investorsPast three months29.713.233.818.318.1-5.9Next three months0.26.86.85.9-16.9-7.6Non-UK investorsPast three months29.712.326.723.318.1-5.9Next three months-0.74.77.15.9-16.9-7.6BreakdownRetail investorsPast three months0.00.0n.a.*n.a.*n.a.*0.0Next three months0.00.0n.a.*n.a.*-20.80.0Other banksPast three months28.714.232.617.47.87.8Next three months-0.34.72.05.9-16.97.6Money market fundsPast three months23.326.439.817.418.17.8Next three months6.00.00.95.9-16.97.6Hedge fundsPast three months23.015.528.423.85.97.8Next three months0.90.00.96.0-16.97.8Sovereign wealth fundsPast three months22.713.829.117.26.08.0Next three months0.06.06.20.0-17.38.0Insurance companies and pension fundsPast three months29.213.221.923.35.97.8Next three months-1.16.86.05.9-16.97.6Other asset managersPast three months29.213.227.823.35.97.8Next three months-1.16.86.05.9-16.97.6Maturity of wholesale debt funding8. Factors affecting issuance of short-term wholesale debt funding:Demand factorsNeed or desire to change size of balance sheetPast three months0.512.918.6-5.228.021.5Next three months6.10.56.2-17.621.521.5Asset-liability matchingPast three months0.50.50.5-12.4-7.90.0Next three months0.50.50.5-11.90.00.0Price/yieldPast three months18.5-3.1-3.4-21.09.214.5Next three months12.922.121.115.821.527.6Non-price terms/liquidityPast three months0.06.90.012.40.8-0.8Next three months0.012.912.412.8-0.80.0Regulatory driversPast three months0.00.80.00.00.00.0Next three months0.00.00.00.50.00.0Supply factorsMarket accessPast three months18.018.036.512.412.312.3Next three months12.412.421.612.412.321.5Investor demandPast three months18.58.836.53.121.521.5Next three months12.99.221.621.621.521.59. Factors affecting issuance of long-term wholesale debt funding:Demand factorsNeed or desire to change size of balance sheetPast three months0.70.65.50.120.415.0Next three months0.91.81.6-0.80.80.8Asset-liability matchingPast three months0.00.65.90.1-0.80.2Next three months1.67.61.6-0.80.00.0Price/yieldPast three months33.532.132.731.633.333.6Next three months20.715.328.626.54.127.2Non-price terms/liquidityPast three months5.58.914.814.35.80.0Next three months5.520.215.48.8-8.21.8Regulatory driversPast three months10.98.97.814.6-0.8-0.8Next three months9.07.88.913.90.00.0Supply factorsMarket accessPast three months18.510.631.018.79.322.2Next three months3.817.111.08.9-9.121.9Investor demandPast three months44.222.734.936.627.833.8Next three months10.027.024.226.89.019.7Currency of wholesale debt funding10. How has the use of the following currency markets changed: (g)SterlingPast three months20.41.913.83.132.816.1Next three months-1.014.06.0-3.3-10.69.4US dollarPast three months-13.29.739.426.420.91.3Next three months9.721.723.118.38.537.5EuroPast three months34.110.213.814.436.529.0Next three months21.0-20.420.44.715.15.4OtherPast three months0.026.40.00.011.126.3Next three months26.1-26.4-15.111.20.07.511. Which of the following factors have affected non-sterling issuance:Changes in currency mix of assetsPast three months0.00.56.70.50.00.0Next three months0.06.70.50.50.00.0Relative cost of funds: due to currency swap marketsPast three months23.433.142.322.634.233.8Next three months1.413.627.233.818.326.4Relative cost of funds: due to other changesPast three months10.48.29.39.522.122.6Next three months0.08.19.19.812.221.3Availability of suitably rated currency swap counterpartiesPast three months1.20.00.00.00.00.0Next three months0.00.00.00.00.00.0Differences in regulation in different currency marketsPast three months0.0-6.30.00.00.00.0Next three months0.0-7.20.00.00.00.0Differences in investor demandPast three months35.332.649.045.936.342.4Next three months22.826.933.135.816.840.7Differences in market accessPast three months29.232.649.418.99.521.6Next three months28.527.427.59.3-9.121.3Footnotes* Data are unpublished for this question as too few responses were received.(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).(b) A positive balance indicates an increase in volume.(c) A positive balance indicates an increase in cost. (d) A positive balance indicates a positive contribution to volumes from the selected factor.(e) A positive balance indicates an increase in the proportion of new issuance accounted for by private issuance/long-term issuance / funding instrument.(f) A positive balance indicates an increase in investors’ demand for banks’ wholesale debt.(g) A positive balance indicates an increase in issuance denominated in the selected currency.

To calculate aggregate results, each lender is assigned a score based on their response. Lenders who report that funding conditions have changed ‘a lot’ are assigned twice the score of those who report that conditions have changed ‘a little’. These scores are then weighted by lenders’ market shares. The results are analysed by calculating 'net percentage balances' – the difference between the weighted balances of lenders reporting that, for example, funding volumes had increased/decreased. The net percentage balances are scaled to lie between (+/-)100. This annex reports the net percentage balance of respondents for each question in the questionnaire.

Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).

Where the survey balances are discussed, descriptions of an ‘increase’ refer to a net percentage balance greater than 10 in absolute terms, and a ‘slight’ change refers to a net percentage balance of between 5 and 10 in absolute terms. Survey balances between 0 and 5 in absolute terms are described as unchanged. The 2019 Q2 and earlier reports also described changes greater than 20 in absolute terms as ‘significant’.

The first Bank Liabilities Survey was conducted in 2012 Q4. A full set of results is available in an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

1. How have funding volumes changed? (b)

2. How has the average cost of funding changed? (c)

Retail deposit spreads relative to appropriate reference rate(s)

Other funding spreads relative to appropriate reference rate(s)

3. Factors contributing to changes in household deposit volumes: (d)

Rates paid relative to the cost of other liabilities

Funding structure objective (excluding those driven by regulation)

Changing supply of deposits by households, unrelated to rates paid or non-price terms on those deposits

4. Factors contributing to changes in private non-financial corporations (PNFCs) deposit volumes:

Rates paid relative to the cost of other liabilities

Funding structure objective (excluding those driven by regulation)

Changing supply of deposits by PNFCs, unrelated to rates paid or non-price terms on those deposits

5. Factors contributing to changes in other financial corporations (OFCs) deposit volumes:

Rates paid relative to the cost of other liabilities

Funding structure objective (excluding those driven by regulation)

Changing supply of deposits by OFCs, unrelated to rates paid or non-price terms on those deposits

6. How have the proportions of wholesale market funding (excluding central bank operations) raised through the following sources changed over the past three months? (e)

Proportion of private/public issuance

Proportion of long-term/short-term issuance

Unsecured borrowing including deposits from OFCs and interbank deposits

Structured products: structured notes

Asset-backed securities (excluding covered bonds)

7. How has demand for wholesale debt from the following investors changed? (f)

Insurance companies and pension funds

Maturity of wholesale debt funding

8. Factors affecting issuance of short-term wholesale debt funding:

Need or desire to change size of balance sheet

9. Factors affecting issuance of long-term wholesale debt funding:

Need or desire to change size of balance sheet

Currency of wholesale debt funding

10. How has the use of the following currency markets changed: (g)

11. Which of the following factors have affected non-sterling issuance:

Changes in currency mix of assets

Relative cost of funds: due to currency swap markets

Relative cost of funds: due to other changes

Availability of suitably rated currency swap counterparties

Differences in regulation in different currency markets

Differences in investor demand

Differences in market access

* Data are unpublished for this question as too few responses were received.

(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).

(b) A positive balance indicates an increase in volume.

(c) A positive balance indicates an increase in cost.

(d) A positive balance indicates a positive contribution to volumes from the selected factor.

(e) A positive balance indicates an increase in the proportion of new issuance accounted for by private issuance/long-term issuance / funding instrument.

(f) A positive balance indicates an increase in investors’ demand for banks’ wholesale debt.

(g) A positive balance indicates an increase in issuance denominated in the selected currency.

The methodology for calculating, and interpretation of the aggregate results are as described in Annex 2. A full set of results is available in an Excel file in the ‘Related documents’ section.Net percentage balances (a)20252026Q1Q2Q3Q4Q1Q2Capital1. How has the level of total capital changed?Past three months27.929.4-0.233.5-13.648.2Next three months-6.6-11.827.13.240.8-7.62. How has the average cost of capital changed?Past three months-4.91.5-16.2-28.2-32.2-12.0Next three months20.92.48.814.629.213.03. Factors contributing to changes in total capital:Direct effects on total capitalDirect effects of profits, losses, deductions and charges (UK-specific)Past three months41.825.634.322.520.940.5Next three months7.520.042.033.835.8-2.4Direct effects of profits, losses, deductions and charges (non-UK specific)Past three months0.813.013.10.00.00.7Next three months12.713.013.112.112.812.2Factors that have affected demand for capitalChanging economic outlookPast three months-8.92.50.5-0.4-8.80.0Next three months-8.9-9.21.0-0.4-8.8-8.8Strategic decisions to increase/reduce riskPast three months0.5-7.1-4.816.07.914.8Next three months1.48.78.27.70.914.8Regulatory driversPast three months0.00.00.00.0-8.80.0Next three months0.00.00.06.10.0-8.8Changes in size of balance sheetPast three months28.01.9-4.611.80.813.4Next three months22.67.715.0-13.018.514.7Changes in riskiness of assetsPast three months0.0-15.5-13.68.80.00.0Next three months-8.9-13.56.85.80.00.0Supply factorsMarket conditionsPast three months-3.1-4.630.021.021.020.6Next three months14.79.421.19.0-21.026.1Investor pressure to change volume of capitalPast three months-6.00.00.00.00.00.0Next three months-6.00.00.00.00.00.04. How has the demand for total capital from the following investors changed?All investorsPast three months39.821.540.319.66.9-9.1Next three months24.715.214.20.0-19.69.1UK investorsPast three months40.921.540.319.66.9-9.1Next three months25.415.214.20.0-19.69.1Non-UK investorsPast three months40.421.339.219.16.7-8.9Next three months25.115.113.90.0-19.28.9BreakdownRetail investorsPast three monthsn.a.*0.027.727.90.0n.a.*Next three monthsn.a.*3.00.00.0-28.0n.a.*Other banksPast three months40.923.140.320.16.9-9.3Next three months25.414.314.20.0-19.69.3Hedge fundsPast three months41.524.340.320.17.1-9.1Next three months25.814.314.20.0-20.19.1Sovereign wealth fundsPast three months41.523.141.320.17.1-9.3Next three months25.814.314.60.0-20.19.1Insurance companies and pension fundsPast three months41.521.940.320.17.1-9.1Next three months25.815.514.20.0-20.19.1Other asset managersPast three months41.521.940.320.17.1-9.1Next three months25.816.014.20.0-20.19.15. Factors affecting the proportion of total capital accounted for by additional Tier 1 and Tier 2 capital instruments:Changing economic outlookPast three months9.2-9.09.19.1-9.10.0Next three months0.00.00.0-9.1-9.10.0Strategic decisions to change mix of capitalPast three months13.614.99.10.0-5.96.1Next three months11.65.9-5.6-6.00.06.6Regulatory driversPast three months0.00.00.00.00.00.0Next three months0.0-5.10.00.06.10.0Market conditionsPast three months-3.10.018.221.49.19.1Next three months9.29.021.49.1-9.19.1Investor demandPast three months9.40.018.721.99.39.3Next three months15.19.221.99.3-9.39.3Footnotes* Data are unpublished for this question as too few responses were received(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).

The methodology for calculating, and interpretation of the aggregate results are as described in Annex 2. A full set of results is available in an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

1. How has the level of total capital changed?

2. How has the average cost of capital changed?

3. Factors contributing to changes in total capital:

Direct effects on total capital

Direct effects of profits, losses, deductions and charges (UK-specific)

Direct effects of profits, losses, deductions and charges (non-UK specific)

Factors that have affected demand for capital

Strategic decisions to increase/reduce risk

Changes in size of balance sheet

Changes in riskiness of assets

Investor pressure to change volume of capital

4. How has the demand for total capital from the following investors changed?

Insurance companies and pension funds

5. Factors affecting the proportion of total capital accounted for by additional Tier 1 and Tier 2 capital instruments:

Strategic decisions to change mix of capital

* Data are unpublished for this question as too few responses were received

(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).

The methodology for calculating, and interpretation of the aggregate results are as described in Annex 2. A full set of results is available in an Excel file in the ‘Related documents’ section.Net percentage balances (a)20252026Q1Q2Q3Q4Q1Q2Transfer price1. How has the average absolute cost of providing funds to business units changed?Past three months-14.2-0.5-7.0-12.2-15.30.4Next three months-21.2-0.5-6.0-11.75.120.72. How has the marginal absolute cost of providing funds to business units changed?Past three months-7.0-16.0-4.6-2.8-1.028.6Next three months-5.2-4.61.013.112.8-11.13. Factors affecting the marginal absolute cost of providing funds to business units (sometimes referred to as the ‘transfer price’):Common equity capitalPast three months0.01.80.00.0-11.80.0Next three months0.0-1.80.00.00.00.0Debt capitalPast three months-14.5-12.9-11.60.0-10.99.6Next three months0.0-12.5-11.40.011.50.0Retail deposit spreads relative to appropriate reference rate(s)Past three months-13.5-0.825.125.8-12.937.8Next three months16.3-0.61.712.70.016.2Short-term wholesale funding spreads relative to appropriate reference rate(s)Past three months-0.122.215.3-1.03.329.9Next three months0.0-6.313.03.39.718.9Long-term secured wholesale funding spreads relative to appropriate reference rate(s)Past three months-7.17.0-0.8-7.0-9.017.4Next three months7.04.60.02.95.58.8Long-term unsecured wholesale funding spreads relative to appropriate reference rate(s)Past three months0.0-14.8-14.0-11.33.113.4Next three months-7.8-1.315.1-11.320.011.9Swaps or other reference ratesPast three months-20.0-20.8-17.1-27.5-16.428.4Next three months-13.7-9.0-2.3-8.936.3-2.34. At what approximate frequency do you currently update the marginal absolute cost of providing funds to business units (sometimes referred to as the ‘transfer price’)? (b)Frequency of transfer price updatePast three months40.940.741.294.194.197.1Footnotes(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).(b) Unlike the other questions in this survey, banks were asked to select the frequency at which they updated their transfer price. This was converted into a number of days. Then a weighted average response, based on lenders’ market shares, was calculated.

The methodology for calculating, and interpretation of the aggregate results are as described in Annex 2. A full set of results is available in an Excel file in the ‘Related documents’ section.

Net percentage balances (a)

1. How has the average absolute cost of providing funds to business units changed?

2. How has the marginal absolute cost of providing funds to business units changed?

3. Factors affecting the marginal absolute cost of providing funds to business units (sometimes referred to as the ‘transfer price’):

Retail deposit spreads relative to appropriate reference rate(s)

Short-term wholesale funding spreads relative to appropriate reference rate(s)

Long-term secured wholesale funding spreads relative to appropriate reference rate(s)

Long-term unsecured wholesale funding spreads relative to appropriate reference rate(s)

Swaps or other reference rates

4. At what approximate frequency do you currently update the marginal absolute cost of providing funds to business units (sometimes referred to as the ‘transfer price’)? (b)

Frequency of transfer price update

(a) Net percentage balances are calculated by weighting together the responses of those banks who answered the question by their market shares. Positive balances indicate that banks, on balance, reported/expected volumes or proportions of funding to be higher than over the previous/current three-month period; demand or supply factors to have contributed positively to volumes; or spreads to have increased relative to the previous/current three-month period (ie become more costly).

(b) Unlike the other questions in this survey, banks were asked to select the frequency at which they updated their transfer price. This was converted into a number of days. Then a weighted average response, based on lenders’ market shares, was calculated.

Next publication date: 8 October 2026