Banks: Bank of Italy – mortgage rates rise to 3.99 per cent in August

Business lending on the decline

(Il Sole 24 Ore Radiocor) - In August, the interest rates charged by banks on mortgages and consumer credit products rose, whilst those on new business loans fell slightly. This is reported in the latest update to the Bank of Italia’s “Banks and Money” series.

In August, the annual percentage rate of charge (APRC) on new loans to households for house purchase stood at 3.99 per cent (3.81 per cent in the previous month): the proportion of these loans with an initial fixed-rate period of up to one year was 23.9 per cent (29.0 per cent in the previous month). The APR on new consumer credit disbursements stood at 10.78 per cent (10.38 per cent in the previous month).
Interest rates on new loans to non-financial corporations stood at 3.71 per cent (3.79 per cent in the previous month): in particular, those for amounts up to 1 million euros stood at 4.40 per cent, whilst rates on new loans exceeding this threshold stood at 3.30 per cent. Interest rates on outstanding deposits as a whole stood at 0.69 per cent (unchanged from the previous month).

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