Bank loans to businesses and households in October fell, according to the forecasts of the Abi report, by 0,82% on a trend basis. This is the 30th consecutive drop even if such a small contraction has not been recorded since July 2012. The total loans of the banks operating in Italy (they concern the entire private sector as well as the public administration) show a drop of 1,92% in October to 1.814 billion.
The weakness of the cycle, according to the Abi, explains the decline. Furthermore, the association of banks notes that loans since the beginning of the crisis have in any case increased in absolute value by over 140 billion. There is also a new record for non-performing loans. Net non-performing loans broke through the ceiling of 80 billion in September (81,4 from 79,5 in August) with an increase of around 10 billion in one year. Gross non-performing loans, at 177 billion, in relation to loans amounted to 9,3%, the highest value since June 1998, when this survey began.
