Statistical Release Financial Vehicle Corporation Statistics. Financial Vehicle Corporation (FVC) 1 Statistics 2016

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1 Glo Statistical Release 10 March 2017 Financial Vehicle Corporation (FVC) 1 Statistics 2016 The total Irish FVC asset value stood at 402bn in Q4 2016, representing a decrease of 7 per cent from Q The number of reporting Irish resident FVCs hit a historical high, reaching 844 vehicles in Q Net transactions were positive in Q4 for the first time in 2016 and represented the third largest inflow since the series was first collected in Q The number of Irish resident vehicles rose over the year by 19 to reach an historic high of 844 Irish resident FVCs (Chart 1). New activity was mainly driven by smaller vehicles issuing corporate asset-backed securities. This is in line with the longer-term trend seen in FVC registration, characterised by a decline in large mortgage based securities vehicles and an increase in smaller asset-backed securities-type vehicles. Chart 1: FVC Total Assets and Number of Reporting Irish Resident FVCs billion Total Assets (LHS) Source: Financial Vehicle Corporations Statistics, Central Bank of Ireland. Number of Reporting Irish Resident FVCs (RHS) Number of Reporting FVC Definitions of an FVC and securitisation can be found on page 6 in Notes.

2 Net transactions of Irish FVCs were negative in However, transactions were positive for the first time in Q and stood at 19.1bn. Valuation movements/other adjustments were largely due to reclassifications combined with the winding down of a number of aged vehicles holding a legacy of bank assets. Chart 2 Quarterly change in FVC Total Assets billion Q1 Q2 Q3 Q Transactions Valuation movements/other adjustments Source: Financial Vehicle Corporation Statistics, Central Bank of Ireland. Euro area FVC total assets decreased by 1.2 per cent over the year reaching 1,804.6 billion at end However, Euro area FVC total assets rose by 1.8 per cent from Q3 to Q reversing the slight downward trend perceived earlier in the year. Ireland s share of euro area assets decreased from 23.6 per cent at end 2015 to 22.3 per cent at end 2016 (Chart 3). Despite the slight decrease, Ireland remains a major hub for securitisation vehicles in the euro area.

3 Chart 3: Irish Share of euro area FVC Total Assets billion 2,300 2,200 2,100 2,000 1,900 1,800 1,700 % Irish share 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% 21.5% 21.0% 1, % Euro area - total assets Irish share of euro area assets Source: Financial Vehicle Corporation Statistics, Central Bank of Ireland; Financial Vehicle Corporation Statistics, European Central Bank.

4 Appendix Chart A.1: Composition of Irish FVC Assets % Deposits and loan claims Securitised loans Other securitised assets Securities other than shares Shares and other equity Other assets Source: Financial Vehicle Corporation Statistics, Central Bank of Ireland; Financial Vehicle Corporation Statistics, European Central Bank. Chart A.2: Composition of Irish FVC Liabilities % 0-10 Loans and deposits received Debt securities issued Capital and reserves Other liabilities Source: Financial Vehicle Corporation Statistics, Central Bank of Ireland; Financial Vehicle Corporation Statistics, European Central Bank.

5 Table 1: Breakdown of Assets and Liabilities of Irish Resident FVCs Outstanding Amounts - billions Transactions - billions 2016Q1 2016Q2 2016Q3 2016Q4 2016Q1 2016Q2 2016Q3 2016Q4 Assets Deposits and loan claims To euro area FVCs Securitised loans Originated by euro area MFIs Domestic households OMUM households Domestic non-financial corporations OMUM non-financial corporations Euro area residents (*) Non euro area residents Originated by euro area residents * Originated by euro area non-financial corporations Originated by non-euro area residents Securities other than shares Issued by euro area FVCs Other securitised assets Originated by euro area general government Originated by euro area non-financial corporations Shares and other equity Issued by euro area FVCs Other assets Liabilities Loans and deposits received From euro area FVCs Debt securities issued Up to 1 year original maturity to 2 years original maturity Over 2 years original maturity Capital and reserves Other liabilities Total * Euro area residents include general government, other financial intermediaries, insurance corporations and pension funds.

6 Notes These data were collected under the requirements of Regulation (EC) No. 24/2009 concerning statistics on the assets and liabilities of financial vehicle corporations engaged in securitisation transactions (ECB/2008/30), which was passed on 19 December 2008, obliging financial vehicle corporations to report quarterly balance sheets. Reporting is obligatory for all financial vehicle corporations resident in Ireland. The full data series for Ireland is available on the Central Bank of Ireland website here and euro area statistics are available from the ECB website here. Financial vehicle corporations (FVCs) are undertakings which are constituted pursuant to National or Community Law and whose principal activity meets both of the following criteria: to carry out securitisation transactions which are insulated from the risk of bankruptcy or any other default of the originator; to issue securities, securitisation fund units, other debt instruments and/or financial derivatives, and/or to legally or economically own assets underlying the issue of securities, securitisation fund units, other debt instruments and/or financial derivatives that are offered for sale to the public or sold on the basis of private placements. Securitisation refers to a transaction or scheme whereby: (i) an asset or pool of assets is transferred to an entity that is separate from the originator and is created for or serves the purpose of the securitisation; and/or (ii) the credit risk of an asset or pool of assets, or part thereof, is transferred to the investors in the securities, securitisation fund units, other debt instruments and/or financial derivatives issued by an entity that is separate from the originator and is created for or serves the purpose of the securitisation. Further information For queries contact: Central Bank, Press Office at press@centralbank.ie or (01)