The contraction in loans to households and businesses slows down, but persists. This is revealed by the usual report by Bank of Italy on the main items of bank balance sheets, according to which in September loans to the private sector, corrected to take account of securitizations and other loans sold and canceled from bank balance sheets, showed a drop in 2,3% on an annual basis, after the -2,5% recorded in August.
Both components showed a slight improvement: loans to households fell by 0,6% over the year against -0,7% in August, while loans to non-financial companies underwent a trend contraction of 3,3%, from -3,8 .XNUMX% of the previous month.
Bad loans continue to increase which, again according to Bank of Italy, recorded a growth rate of 19,7% on an annual basis in September. In August the increase was 20%.
In September, the interest rates on loans granted to households for the purchase of homes stood at 3,27%, down from 3,38% in August. Rates on new consumer credit disbursements, on the other hand, fell to 9,24%, from 9,34% in August. The interest rates on new loans to non-financial companies of up to 1 million euro came to 3,60%, while those on loans of less than this amount stood at 2,43%.
In September, the annual growth rate of private sector deposits was 3,6%, up from the 3,1% recorded in August. In comparison with the month of September 2013, bond funding, including bonds held by the banking system, fell by 14,2%.
