The household net financial assets-to-income ratio combines non-financial and financial accounts data. It is defined as the ratio of households’ net financial assets – which refers to all financial assets minus all financial liabilities – at the end of a calendar year, to the gross disposable income earned by households in the course of that year.
It therefore represents the accumulation of financial assets, after deduction of liabilities, of households as a proportion of their annual income. However, this ratio does not account for non-financial assets such as dwellings.