Bank of Italy, non-performing loans: growth halved

The growth of non-performing loans in the banking sector is slowing down. According to the Bank of Italy's “Money and Banks” statistical bulletin, the twelve-month growth rate in July was 0,5% against +1,1% in June. The overall level of non-performing loans reached 198,26 billion. Loans to the private sector are growing, up by 0,4% on an annual basis, after the +0,6% trend in June. As in the previous month, loans to households grew by 1,4% on an annual basis in July, while those to non-financial companies contracted by 0,5% (-0,1% in June). In terms of deposits, in July the annual growth rate of private sector deposits was 4,9% (3,4% in June). Bond funding, on the other hand, decreased by 10,6% on an annual basis (-11,8% in the previous month). The interest rates on loans disbursed in the month to households for the purchase of homes amounted to 2,44%, from 2,55% in the previous month.