The slow recovery of credit continues in Italy. In January, loans to the private sector, adjusted to take into account securitizations and other loans sold and derecognised from bank balance sheets, grew by 1,2 per cent on an annual basis (1,1 per cent in the previous month). The data is contained in the latest bulletin of the Bank of Italy.
Loans to households grew by 2,2 percent (1,9 percent in December), those to non-financial companies by 0,9 percent (0,2 percent in December). Private sector deposits increased by 3,5 percent year on year.
The interest rates on loans disbursed in the month to households for the purchase of homes, including ancillary costs, were equal to 2,38 per cent (2,32 in the previous month); those on new consumer credit disbursements at 8,26 per cent.
Interest rates on new loans to non-financial companies were 1,56 per cent (1,54 in December); those on new loans of amounts up to 1 million euros were equal to 2,28 per cent, those on new loans of amounts exceeding this threshold 1,07 per cent. Deposit rates on all outstanding deposits remained stable at 0,41 per cent.
As for private sector deposits, again in January they increased by 3,5% on an annual basis, while bond funding by banks decreased by 18,1%. The growth rate of non-performing loans was 4% on an annual basis (5,6% in the previous month).
The growth rate of non-performing loans, when this is corrected to take account of securitizations and other loans sold and canceled from bank balance sheets, similarly to what is done for loans, is equal to 12,2% (12% per cent in December ).
