Source
Source Contact person/organisation Contact person/organisationIn this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Data Characteristics Data Characteristics Other data characteristics Other data characteristicsThe household debt ratio presents the total outstanding debt of households as a percentage of their disposable income. It is the most frequently reported measure on the indebtedness of households and intends to assess debt sustainability of the household sector.
High indebtedness levels generally increase the financing costs of the borrower and deteriorate balance sheet positions. On the other hand, however, one should also take into account the availability of assets, e.g. dwellings, for which the borrowing has been made.
A high leverage ratio, as well as a growing debt ratio, is often interpreted as a sign of financial vulnerability. If it is accompanied by a higher-than-expected interest rate growth, a decline in disposable income, unemployment, it could reduce households' ability to repay loans from current disposable income and hence reduce consumption in the period ahead.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
Debt is a commonly used concept, defined as a specific subset of liabilities. All debt instruments are liabilities, but some liabilities such as equity and investment fund shares, and financial derivatives are not considered as debt. Debt is thus predominantly obtained by adding the following liability categories: monetary gold and SDRs (AF1), currency and deposits (AF2), debt securities (AF3), loans (AF4), Insurance pension and standardized guarantees (AF6) and other accounts payable (AF8). The debt of households mainly consists of home mortgage loans, but also other types of liabilities such as credit lines and credit cards, and other consumer credit (such as automobile loans or student loans).
Other manipulations Other manipulationsFor a given country, changes in the ratio can be due to changes in outstanding debt and/or changes in disposable income. Thus, a reduction in the debt ratio during the deleveraging phase can be attributed to improvements to income or to a reduction in debt, in particular consumer credit and mortgage loans.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
International comparability of household debt is generally good. However, debt ratios across countries can be significantly affected by different institutional arrangements, among others tax regulations regarding tax deductibility of interest payments.
In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
The household debt ratio presents the total outstanding debt of households as a percentage of their disposable income. It is the most frequently reported measure on the indebtedness of households and intends to assess debt sustainability of the household sector.
High indebtedness levels generally increase the financing costs of the borrower and deteriorate balance sheet positions. On the other hand, however, one should also take into account the availability of assets, e.g. dwellings, for which the borrowing has been made.
A high leverage ratio, as well as a growing debt ratio, is often interpreted as a sign of financial vulnerability. If it is accompanied by a higher-than-expected interest rate growth, a decline in disposable income, unemployment, it could reduce households' ability to repay loans from current disposable income and hence reduce consumption in the period ahead.
Definition
Debt is a commonly used concept, defined as a specific subset of liabilities. All debt instruments are liabilities, but some liabilities such as equity and investment fund shares, and financial derivatives are not considered as debt. Debt is thus predominantly obtained by adding the following liability categories: monetary gold and SDRs (AF1), currency and deposits (AF2), debt securities (AF3), loans (AF4), Insurance pension and standardized guarantees (AF6) and other accounts payable (AF8). The debt of households mainly consists of home mortgage loans, but also other types of liabilities such as credit lines and credit cards, and other consumer credit (such as automobile loans or student loans).
For a given country, changes in the ratio can be due to changes in outstanding debt and/or changes in disposable income. Thus, a reduction in the debt ratio during the deleveraging phase can be attributed to improvements to income or to a reduction in debt, in particular consumer credit and mortgage loans.
Comparability
International comparability of household debt is generally good. However, debt ratios across countries can be significantly affected by different institutional arrangements, among others tax regulations regarding tax deductibility of interest payments.