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The distribution of household wealth in Belgium : initial findings of the second wave of the Household Finance and Consumption Survey (HFCS)

Author

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  • Ph. Du Caju

    (National Bank of Belgium)

Abstract

The article draws on the preliminary findings of the second wave (2014) of the Household Finance and Consumption Survey (HFCS) to analyse the structure and distribution of household wealth in Belgium, and compares these with the findings of the first wave (2010) as pertaining to Belgium. All things considered, income and wealth distribution in Belgium have remained fairly stable. A comparison of survey findings for 2010 and 2014 reveals increased investment in – and loans attracted towards – other property, in addition to households’ main residences. The survey also finds that households have shifted away from direct investment in the equity and bond markets and now have more investments in mutual funds. With such assets held almost exclusively by wealthier households, it is this particular group’s portfolio decisions that determine this overall outcome. Income from capital – i.e. interest income, dividends and rental income – came down on average in the 2010-14 period, mainly due to lower interest rates. This type of income is primarily found in the wealthiest households. Survey findings reveal increased participation and higher outstanding amounts for all types of loans. A more detailed analysis points to potential pockets of risk in the mortgage market, particularly for singleparent families and to a lesser degree also single-person households.

Suggested Citation

  • Ph. Du Caju, 2016. "The distribution of household wealth in Belgium : initial findings of the second wave of the Household Finance and Consumption Survey (HFCS)," Economic Review, National Bank of Belgium, issue ii, pages 27-43, september.
    • Handle: RePEc:nbb:ecrart:y:2016:m:september:i:ii:p:27-43
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    References listed on IDEAS

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    1. Philip Du Caju, 2012. "Asset formation by households during the financial crisis," Economic Review, National Bank of Belgium, issue i, pages 87-100, June.
    2. Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2016. "Unemployment risk and over-indebtedness," Working Paper Series 1908, European Central Bank.
    3. Ph. Du Caju, 2013. "Structure and distribution of household wealth: An analysis based on the HFCS," Economic Review, National Bank of Belgium, issue ii, pages 41-62, September.
    4. Olympia Bover & Jose Maria Casado & Sonia Costa & Philip Du Caju & Yvonne McCarthy & Eva Sierminska & Panagiota Tzamourani & Ernesto Villanueva & Tibor Zavadil, 2016. "The Distribution of Debt across Euro-Area Countries: The Role of Individual Characteristics, Institutions, and Credit Conditions," International Journal of Central Banking, International Journal of Central Banking, vol. 12(2), pages 71-128, June.
    5. B. De Backer & Ph. Du Caju & M. Emiris & Ch. Van Nieuwenhuyze, 2015. "Macroeconomic determinants of non-performing loans," Economic Review, National Bank of Belgium, issue iii, pages 47-65, December.
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    Cited by:

    1. Philip Du Caju, 2017. "Pockets of risk in the Belgian mortgage market : Evidence from the Household Finance and Consumption Survey (HFCS)," Working Paper Research 332, National Bank of Belgium.
    2. Laurens Cherchye & Bram De Rock & Dieter Saelens, 2024. "Financial portfolio performance of Belgian households : a nonparametric assessment," Working Paper Research 448, National Bank of Belgium.
    3. Laurens Cherchye & Bram De Rock & Dieter Saelens, 2024. "Nonparametric analysis of financial portfolio performance," Working Papers ECARES 2024-08, ULB -- Universite Libre de Bruxelles.
    4. Ph. Du Caju & M. Emiris & Ch. Piette & M.-D. Zachary, 2018. "Shedding new light on the mortgage debt of households in Belgium," Economic Review, National Bank of Belgium, issue i, pages 97-114, June.
    5. B. De Backer & J. Wauters, 2017. "The cyclical and structural determinants of the low interest rate environment," Economic Review, National Bank of Belgium, issue ii, pages 69-86, september.
    6. V. Baugnet & Ph. Du Caju & M.-D. Zachary, 2017. "Low interest rates and their impact on Belgian households," Economic Review, National Bank of Belgium, issue i, pages 43-59, June.
    7. Philip Du Caju, 2017. "Pockets of risk in the Belgian mortgage market - Evidence from the Household Finance and Consumption survey," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Data needs and Statistics compilation for macroprudential analysis, volume 46, Bank for International Settlements.

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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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