In a new blog post, the European Central Bank examines why around 80% of euro area households do not own stocks or other market based financial instruments and argues that broader participation requires policies tailored to different household circumstances. Nearly EUR 10 trillion, about one-third of household savings, remains in cash and low yield bank deposits. The participation gap with the United States is widest among wealthier households, indicating that affordability alone does not explain the difference. The analysis groups households into four archetypes: real estate owners, deposit holders, pension product holders and direct capital market investors. More than 60% hold most of their wealth in real estate, around 25% mainly use deposits, about 10% invest indirectly through pension and insurance products, and only 4% allocate a substantial share directly to market instruments. Financial constraints are central for lower wealth households, while perceived risk, limited knowledge and low trust deter households that have the means to invest. The authors advocate a combination of stronger financial literacy, simple and accessible investment products, and pension arrangements that provide indirect market exposure. They also call for timely implementation of savings and investment accounts and pension reforms under the savings and investments union agenda.
2026-09-15European Central Bank
European Central Bank blog calls for tailored policies as 80% of euro area households remain outside capital markets
A European Central Bank blog finds that 80% of euro area households do not own market based financial instruments, while nearly EUR 10 trillion remains in cash and low yield deposits. Barriers range from limited resources to perceived risk, low trust and weak financial knowledge. The authors call for tailored financial literacy measures, accessible investment products and pension reforms.