The effect of the easing of monetary policy of ECB, which had become progressively more consistent starting from last October, stabilized in July. This is what theItalian Banking Association (Abi) since July monthly report. The Abi recorded that in the first 11 days of July the rate Euribor at 3 months was on average 3,70% (3,72% in June) and decreased by 30 basis points compared to the value maximum recorded in October 2023. Consequently, on the one hand the installment for those who have signed up is lightened adjustable rate mortgages, on the other hand the yield on government bonds also decreases. The burden of taxation remains important.
The burden of taxation, close to 60% of the investment
If the fall in official rates is a panacea for many sectors, starting with mortgages, it nevertheless remains a significant burden, already underlined by the president of the ABI, Antonio Patuelli on the occasion of theAnnual meeting of the association: that represented by tax burden. “Savers in Italy suffer a heavy taxation which often directs them to invest abroad" and which must therefore be reduced, said Patuelli, explaining that currently "savers who invest in the medium and long term suffer a taxation of almost 60% of the total investment by adding the IRES, the 3,5% surcharge and the local ones, the dry coupon on dividends, the IRAP, the IMU and the stamp duty. Savings invested in banks' liquidity instruments are essential for providing loans, added President Abi. “When it comes to taxation on limited liability companies and joint-stock companies, companies pay 24% plus IRAP, and investors pay 26% when they receive the distribution” said Luigi Melloni, partner of the consultancy firm tax and corporate Rlvt a Mf, taking shares as an example: for example through coupons. “Out of 100 of added value for the economic system”, adds the expert, “50 goes to taxation”.
Taxation on investments: from 12,50% to 26%. The exception of the Pir
The most convenient taxation is that on government bonds, for everyone at 12,50% to which it is necessary to add, as for all investments, the stamp duty of 2 per thousand. For all other investments the taxation is 26%, with the sole exception of social security products/pension funds for which it is 20%. Investments in managed savings instruments such as funds and ETFs, normally taxed at 26%, benefit from the advantageous taxation of 12,5% for the entire part invested in government bonds. And then there are the PIRs, the ordinary and alternative individual savings plans, which if certain constraints are respected (for example, holding in the portfolio for at least five years and the main investment in Italian companies) a complete regime is envisaged. Of exemption.
The drop in mortgage rates, but also in BOT and BTP yields
The Abi report published this morning shows a sui rate in July Boots six-month average of 3,60% (3,59% on average in June) and down by 45 basis points compared to the maximum value recorded in October 2023, the interest rate BTP it was on average 3,96% (3,95% in June) and a decrease of 103 basis points compared to the maximum value recorded in October last year. The decrease in rates has certainly had an effect on the average rate for home purchases, decreased to 3,56%, compared to 3,61% in May 2024 and 4,42% in December 2023, while the average rate on new business financing operations decreased to 5,25% compared to 5,38 % in May 2024 and 5,45% in December 2023 while the average rate on total loans (therefore subscribed over the years) fell to 4,77% from 4,80% in the previous month, while the IRS rate at 10 years (widely used in mortgages) was on average 2,82% (2,79% in June) and down by 70 basis points compared to the maximum value recorded in October 2023 and
Banks' indirect funding is growing
La indirect collection, that is, the investments in securities held in banks, presents an increase of approximately 213 billion between May 2023 and May 2024 (134,8 billion families, 20 billion businesses and the remainder to other sectors, financial companies, insurance companies, public administration). In June 2024, medium and long-term funding, through bonds, grew by 14,9% compared to a year ago (+18,4% in the previous month). Deposits alone, in various forms, grew by 2024% on an annual basis in June 1,4 (-0,8% the previous month). Overall direct funding (deposits from resident customers and bonds) in June 2024 increased by 3,0% on an annual basis, continuing the positive trend recorded since the beginning of the year (+1,4% in May 2024).
Attempts in the field to support financial investments
Politics is also taking an interest in supporting Italian savings, understood as an engine of economic growth, launching some projects, as also suggested by Manifesto for the development of markets of Capital drawn up by Equita, Borsa Italiana and Bocconi. “We have worked to strengthen alternative finance instruments precisely with a view to encouraging investments in the real national economy” he told Mf Giulio Centemero, member of the Finance commission of the League. “For example, the abolition of the unique ownership of Most, obtained in the Advances Decree, goes in the direction of relieving investments in the real economy”. The next step, he adds, “is to create i Pir Evergreen".
Centemero also supports the overcoming of the Tobin Tax, the tax on financial transactions, "in order to promote the efficiency of financial markets national and the liquidity of the companies operating there". And then there's the Tax Delegation, within which approximately 80% of the implementing decrees were approved: "With regard to principles and directive criteria for the revision of the tax system on the income of natural persons, income of a financial nature, the harmonization of the regulations on financial income, providing a single income category based on the cash principle", reports MF.
