Flow of Funds: Japan–US–Europe Comparison, Q1 2026

This material, titled "Japan–US–Europe Comparison of Flow of Funds," is a comparative document prepared by the Bank of Japan's Research and Statistics Department and presents comparisons of major sectors in Japan, the United States, and the euro area, as well as between Japan and the United States. Section I, the Japan–US–Europe comparison, covers the financial asset and liability composition of financial institutions, household financial asset composition, private nonfinancial corporation financial liability composition, and financial surpluses and deficits in major sectors. Section II, the Japan–US comparison, covers the financial asset composition of investment trusts, pension funds, and insurance. All comparison data are as of the end of March 2026.

The material consists of Figures 1 through 7 and notes, and shows outstanding balances and composition ratios for financial assets and liabilities. A composition ratio is the proportion of a sector's total financial assets or financial liabilities. "Total other" is defined as the residual after deducting cash and deposits, Fiscal Loan Fund deposits (Japan only), loans and borrowings, debt securities, investment trusts, equities and other instruments, and insurance, pension, and standardized guarantees. Some items with negligible outstanding balances are not shown in the figures.

Figure 1-1 shows total financial assets of financial institutions of 4,618 trillion yen in Japan, 151.5 trillion dollars in the United States, and 98.7 trillion euros in the euro area. In Japan, depository institutions hold 2,427 trillion yen, insurance and pension funds hold 679 trillion yen, and other financial institutions hold 1,511 trillion yen. In the United States, the corresponding figures are 29.7 trillion dollars, 44.4 trillion dollars, and 77.4 trillion dollars. In the euro area, they are 39.0 trillion euros, 12.7 trillion euros, and 47.0 trillion euros. Asset items include cash and deposits, loans, debt securities, investment trusts, equities and other instruments, insurance, pension, and standardized guarantees, and total other. Other financial institutions in Japan comprise securities investment trusts, other financial intermediaries, non-intermediating financial institutions, and public captive financial institutions.

Figure 1-2 shows total financial liabilities of 4,654 trillion yen in Japan, 157.0 trillion dollars in the United States, and 99.3 trillion euros in the euro area. In Japan, the financial liabilities of depository institutions, insurance and pension funds, and other financial institutions are 2,525 trillion yen, 698 trillion yen, and 1,431 trillion yen, respectively. In the United States, the corresponding figures are 30.9 trillion dollars, 45.1 trillion dollars, and 81.0 trillion dollars. In the euro area, they are 38.9 trillion euros, 12.4 trillion euros, and 48.0 trillion euros. Liability items include cash and deposits, borrowings, debt securities, investment trusts, equities and other instruments, insurance, pension, and standardized guarantees, and total other. Fiscal Loan Fund deposits are also shown for Japan only.

Figure 2 compares total household financial assets. Japan has 2,386 trillion yen, comprising cash and deposits at 47.2%, equities and other instruments at 16.7%, investment trusts at 6.9%, insurance, pension, and standardized guarantees at 25.7%, debt securities at 1.5%, and total other at 3.2%. The United States has 141.6 trillion dollars, comprising equities and other instruments at 43.4%, insurance, pension, and standardized guarantees at 24.5%, investment trusts at 13.3%, debt securities at 4.3%, cash and deposits at 10.7%, and total other at 2.5%. The euro area has 35.5 trillion euros, comprising cash and deposits at 31.1%, equities and other instruments at 25.5%, insurance, pension, and standardized guarantees at 26.5%, investment trusts at 12.1%, debt securities at 2.8%, and total other at 2.0%.

Figure 3 compares the financial liabilities of private nonfinancial corporations. Japan has 2,746 trillion yen, comprising equities and other instruments at 63.2%, borrowings at 21.5%, debt securities at 3.3%, and total other at 12.0%. The United States has 117.9 trillion dollars, comprising equities and other instruments at 72.9%, debt securities at 7.6%, borrowings at 4.7%, and total other at 14.8%. The euro area has 56.4 trillion euros, comprising equities and other instruments at 57.7%, borrowings at 25.9%, debt securities at 3.5%, and total other at 12.9%. The euro area composition for nonfinancial corporations includes both private and public nonfinancial corporations. Figure 4 shows financial surpluses and deficits from fiscal 2005 through fiscal 2025 as a percentage of nominal GDP for private nonfinancial corporations, general government, households, and the rest of the world in Japan and the United States, and for nonfinancial corporations, general government, households, and the rest of the world outside the euro area.

Figures 5 through 7 in Section II, the Japan–US comparison, show the financial asset composition of each financial institution. Investment trusts in Japan have 467.4 trillion yen, comprising external securities investment at 42.7%, equities and other instruments at 31.6%, total other at 8.9%, debt securities at 7.3%, investment trusts at 4.2%, loans at 4.9%, and cash and deposits at 0.4%. In the United States, they have 45.1 trillion dollars, comprising equities and other instruments at 60.6%, debt securities at 29.8%, loans at 6.8%, total other at 1.6%, cash and deposits at 0.6%, and investment trusts at 0.6%. US statistics do not distinguish between domestic and foreign securities and have no transaction item for external securities investment.

Pension funds in Japan have 178.5 trillion yen, comprising external securities investment at 22.9%, debt securities at 21.9%, investment trusts at 20.9%, equities and other instruments at 12.1%, total other at 10.1%, cash and deposits at 7.3%, and loans at 4.9%. In the United States, they have 29.6 trillion dollars, comprising equities and other instruments at 32.1%, investment trusts at 20.5%, total other at 10.9%, debt securities at 11.3%, loans at 12.8%, pension funds' claims on sponsors at 12.2%, and cash and deposits at 0.2%. Insurance in Japan has 500.5 trillion yen, comprising debt securities at 39.4%, external securities investment at 20.3%, equities and other instruments at 8.5%, loans at 6.7%, investment trusts at 4.3%, cash and deposits at 2.8%, and total other at 17.8%. In the United States, it has 14.8 trillion dollars, comprising debt securities at 43.0%, equities and other instruments at 12.6%, investment trusts at 12.1%, loans at 8.0%, cash and deposits at 1.6%, and total other at 22.7%. Classifications generally follow Japan's flow of funds accounts, and correspondences between sectors and transaction items are shown for the United States and euro area.