In November, mortgage rates increased in Italy for the second consecutive month. This was noted by the Italian Banking Association in its latest report, explaining that the average figure has grown to 1,91% from 1,88 in October. The increase - writes the ABI - is linked "to the increase in the spread in the yields of sovereign bonds".
In any case, according to Gianfranco Torriero, deputy general manager of the Association, the rise in rates "doesn't cause concern", because "we find ourselves in a condition where interest rates are at levels never recorded before, the lowest since are the surveys and probably also from before. This is one of the positive results that come from Italy's membership of the euro”.
BAD LOANS FALLING BELOW 40 BILLION…
The monthly ABI report also shows that in October the net bad debts of Italian banks fell below the 40 billion wall, to 38,288 billion. The downward trend therefore continues: in September bad debts amounted to 40,221 billion and the month before that to 40,49 billion. Compared to the peak of 88,8 billion recorded in November 2015, "the reduction is over 50 billion (about -57%)". In October, adds Palazzo Altieri, the ratio with total loans was 2,26%, from 2,34% in September.
…BUT LOANS ARE STILL SLOWING DOWN
Despite this improvement in banks' balance sheets, growth in loans to households and businesses continues to slow. In November, according to the ABI report, total loans increased by 1,53% on an annual basis, a marked slowdown from the +2,07% in October and the +2,28% in September.
In October, underlines the Association, the total amount of mortgages to households marked a +2,3% compared to the same month in 2017. Instead, the trend of total loans to the economy slowed down: +1,25% in November, from +1,76% in October.
Last month, adds Palazzo Altieri, the amount of loans was 1.727 billion, "about 25 billion higher than the amount raised (1.702 billion)".
