In October, loans to the private sector recorded a record 3,7% year-on-year decline, after the -3,5% recorded in September. This was announced in a note from Bank of Italy, which specifies that loans to households suffered a drop of 1,3% on an annual basis while those to non-financial companies are down by 4,9%.
Non-performing loans are still high, the growth rate of which over 12 months remains stable at 22,9%. The interest rates on loans granted to households for the purchase of homes rose to 3,90% from 3,97% in September. The rates on new consumer credit disbursements to 9,28% from 9,61%.
Again according to Bank of Italy, the interest rates on new loans to non-financial companies of up to 1 million euros were 4,49% against 4,33% in September. Those on new loans exceeding this threshold at 2,86% (2,98% in September).
The annual growth rate of bank deposits in the private sector was instead equal to 5,4% (3,6% in September). Bond funding, including bonds held by the banking system, decreased by 7% on an annual basis (-7,2% in September).
