The decline in non-performing loans on Italian banks' balance sheets continues in July, with gross loans reaching a minimum since January 2013 and net loans since December 2010. Reuters reports.
According to data from the Bank of Italy bulletin 'Banche e moneta', in July the total gross non-performing loans held by credit institutions resident in Italy amounted to 127,479 billion euros - a minimum since January 2013 - from 131,743 billion in June.
Net impaired loans fell to 40,126 billion - a record low since December 2010 as the previous month - from 42,757 billion in June.
On an annual basis, gross non-performing loans recorded a reduction rate of 20,6% after the -26% in June.
In terms of bank funding, the growth of deposits slowed down moderately in July, with an annual +4,6% from +6,8% in June.
On the other hand, bond funding continues to contract, with -19,3% from the previous -19%.
As for credit assets, the overall growth rate of loans to the private sector is 2,6% on an annual basis after 2,5% in June.
In detail, loans to businesses increased by 1,6% over the year from 2,8% in the previous month; those to families grew at an annual rate of 2,9% from 2,8% in June.
