“In the first quarter of 2014, the supply conditions for loans to businesses remained slightly restrictive, reflecting the perceived risk associated with the still uncertain outlook for economic activity in general and for particular sectors and businesses”. This was stated by Bankitalia in a note.
“The restriction continued to affect most of the terms and conditions. Intermediaries, which do not expect significant changes in the current quarter, have relaxed the criteria for offering loans to households for the purchase of homes, following the reduction in funding costs and the increase in competitive pressure from other banks and financial institutions".
“The easing of credit policies – reads the note – above all translated into a reduction in margins on average loans and an increase in the ratio between the value of the loan and the guarantees. The offer conditions remain unchanged in the current quarter”.
According to the assessments of the intermediaries, the demand for loans has shown signs of improvement: the decline in that of businesses has stopped and the demand of households has increased. In the second quarter of this year, credit applications from businesses should increase and, to a more marked extent, those for mortgages for the purchase of homes.
