Interest rates are falling loans disbursed to families for the purchase of homes. According to the surveys conducted by Bank of Italy, in March the rates including ancillary costs were equal to 2,95% vs 3,01% registered in February. Rates on new consumer credit disbursements also fell, to 8,48% from 8,64% in the previous month.
i also go down interest rates on new loans to non-financial companies for amounts up to one million euros, equal to 3,09% (3,26% in the previous month), while those on new loans for amounts exceeding this threshold amounted to 1,77% (1,83% in February). Interest rates on all outstanding deposits were equal to 0,65% (0,66% in the previous month).
Again according to Bank of Italy, the decline in bank loans to the private sector is slowing down. The figure, corrected to take account of securitizations and other loans sold and canceled from bank balance sheets, recorded in March a contraction of 1,5% on an annual basis against -2% in February. Loans to households fell by 0,3% over twelve months (-0,4% in the previous month) while those to non-financial companies contracted by 2,2% (-3% in February).
Also in March, the growth rate on twelve months of non-performing loans amounted to 14,9% against 15,3% in February, while the annual growth rate of private sector deposits was 3,3% (4,3%). Bond funding, including bonds held by the banking system, decreased by 17,5% on an annual basis (-19,2 percent in the previous month).
