Fall in bank loans increased in August, says Bank of Italy
Increase in bad loans steady at 22.3%08 October, 11:57
The central bank said loans to Italian households and non-financial firms were down 3.5% in August compared to the same month in 2012.
The year-on-year decrease in July was 3.3%.
The Bank of Italy said loans to households were down 1.2% in August with respect to the same month in 2012, compared to 1.1% in July.
Loans to non-financial businesses were 4.6% lower than in August 2012, compared to -4.1% for the year-on-year figure in July.
This acceleration is a worrying sign as attempts to pull the Italian economy out of its longest recession in 20 years may be hampered if families and businesses have trouble obtaining credit.
The central bank said the rate of growth in the number of bad loans was steady in August at 22.3%. It added that bank deposits were up 6.6% in August with respect to the same month in 2012, compared to a year-on-year figure of 5.9% in July.