Commitment 1: Financial institutions will continue to finance the economy

Executive summary

  • The financial sector supplies the economy with oxygen: each extra euro in savings is converted into one euro of credit for businesses, households and public authorities.
  • Savings accounts are a crucial link in the entire financing system. If just 5% of the deposit base disappears, the financial sector may no longer be able to comply with the Basel III rules.
  • Savings are cyclical.
  • Savings taxation policy must be approached with caution, as any change has repercussions for the entire web of financing.
  • Interest rates are much lower in Belgium than in neighbouring countries.
  • The current economic climate is weighing on lending: demand for credit is falling, as is the quality of credit files.
  • Over time, Basel III may have an impact on the availability and cost of long-term loans.