Bank loans in Italy fall 4% in twelve months to November
Steepest decline in 17 years, ABI finds17 December, 16:02
The last time bank loans had contracted at such a rate was in June of 1999. Bank loans were down 3.7% in October.
ABI said the credit market felt the brunt of Italy's long recession and persistent weakness in demand. Recession also caused a marked increase in defaults and failed businesses, ABI found.
Non-performing loans reached a gross total of 147.3 billion euros in October. That is 27.5 billion euros more than in October 2012 and 100 billion euros more than at the end of 2007. Non-performing loans represented 7.7% of total loans, the highest ratio since October of 1999. But bank deposits totalling 1.2 trillion euros rose 5.7% in November over the same month last year, and were up 5.1% in October. Savings bonds continued their downward march, sinking 9.3% in twelve months to 519 billion euros in November. In October, bonds were down 9.6% over the previous year.