Loans slowing down for Italian banks, while interest rates are rising and non-performing loans are stable. In December, according to the Bank of Italy, the annual growth rate of loans to the private sector decreased to 2,3% from 3,5% in November. The slowdown affected both business loans (2,6% from 4,4% in November) and household loans (3,4% from 3,9% the previous month).
Interest rates on loans to businesses increased to 4,18% in December, up from 3,86% in November. The rates, inclusive of ancillary costs, on mortgages to buy homes disbursed to households increased to 4,26% from 3,98% in November, while those on new consumer credit disbursements increased to 9,11% from 9,07, XNUMX% of the month before.
Finally, in December the annual growth rate of non-performing loans remained substantially stable compared to the previous month (22,2% from 22,1% in November).
