Bank loans were flat in June, the
Italian Banking Association (ABI) said in its monthly report out
Tuesday. Lending to families and businesses added 0.04% compared
to 0.33% in May and -0.22% in June 2015. Overall lending
including that to the public sector was -0.3%. Also in June,
mortgage interest rates fell to a new historic low of 2.21%
compared to 2.25% in May and 5.72% in 2007. Two-thirds of new
mortgages have fixed rates, ABI reported. Overall mortgage loans
to families added 1.5% in May over the same period the previous
year. "This confirms the mortgage market is in recovery,"
according to ABI. May non-performing loans (NPLs) net of
devaluations already carried out by banks with the their
in-house resources totalled 85 billion euros compared to 84
billion euros in April. Net NPLs made up 4.72% of total loans
extended in May 2016 and 4.67% in April, compared to 4.93% at
the end of 2015 and 0.86% before the economic crisis began in
2008.
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