Bankitalia, loans to businesses down 3.5%

Lending to the corporate world dropped again. In August, loans to the private sector, adjusted on the basis of the harmonised methodology agreed within the European System of Central Banks (ESCB), fell by 1.5% over the twelve months (-1.6% in the previous month), Bankitalia announced in its statistical publication 'Banks and money: national series - August 2024', specifying that loans to households fell by 0.6% over the twelve months (as in the previous month) while those to non-financial companies fell by 3.5% (-3.9 in the previous month). Deposits from the private sector increased by 2.2 per cent (1.1 per cent in July); bond deposits rose by 12.5 per cent (13.3 in July).

Slight rise in mortgage rates in August. Interest rates on loans disbursed in the month to households for the purchase of homes inclusive of ancillary expenses (Annual Percentage Rate, APR) stood at 4.10 per cent (3.94 in July); the share of these loans with an initial rate-setting period of up to one year was 15 per cent (9 per cent in the previous month). Bankitalia specified that the APR on new consumer credit disbursements stood at 10.50 per cent (10.51 in the previous month). Interest rates on new loans to non-financial companies were 5.13% (5.28 in the previous month), those for amounts up to EUR 1 million were 5.49%, while rates on new loans above that threshold stood at 4.91%. Deposit rates on all outstanding deposits were 1.00 per cent (1.01 in the previous month).