Loans to increasing families, according to the Bank in Italy
Posted On March 14, 2019
Loans to families on the rise, according to the Bank in Italy
In a recent study it confirms the growth of bank support for the real economy
Consumer credit in Italy is confirmed to be good, even in a month like the month of August, which also sees Italians committed to enjoying their well-deserved holidays after a year of work. Loans to families were in fact the protagonists of growth not far from the 3% threshold, a trend that confirms the one recorded in July. Financing for non-financial companies, on the other hand, remains at a standstill, with a slight decline that basically confirms the reluctance of the credit system to support companies, at a time when impaired loans continue to weigh on its belly.
The data in question are contained in a study prepared by the analysts of the Bank in Italy, entitled “Banks and money: national series”, a survey that tried to understand the health status of credit in our country and current trends. Among the other interesting data, the growth in deposits (4.8%) and the sharp fall in the collection of bonds, which showed almost 15% less, should be mentioned. Also the interest rates on loans reserved for the purchase of homes increased slightly, reaching an average of 2.51% in August, and those bearing on loans granted to non-financial companies, reaching 1.6%.
Precisely the data on non-performing loans, the biggest problem in the Italian banking sector, seems to be marking a very positive result, with an acceleration of the trend recorded in recent months, which saw a significant reduction in bank bad debts. In August, in fact, the amount of bad debts has seen a contraction of 6.5%, almost an additional percentage point more than the figure recorded a month earlier. This is a fairly comforting outcome, which confirms a trend that has consolidated over the past few months.
The same president of Italian Banking Association, Antony Zuelig, on the occasion of the presentation of the data related to July 2017, had stated how the almost 66 billion registered at that time represented the lowest level since March 2013. During the the first seven months of the year, impaired loans fell by 25%, a dynamic that is further confirmed by the August figures. Naturally the alarm remains high in the government, also due to the lack of a market for non-performing loans in Italy, so much so that the Economy Minister, Pier Carlos Padory, in July, on the sidelines of the Ecofin meeting, does not he had had particular hesitations in affirming how the hypothesis of the Bad Bank as a state guarantee had been discussed, which he had long advocated.