Bank of Italy, loans to households and businesses accelerate in February

2021-04-12T14:44:44.220Z

In February, loans to the private sector, adjusted to take into account securitisations and other loans sold and canceled from bank balance sheets, grew by 4.5 per cent over twelve months (4.3 in the previous month). This was announced by the Bank of Italy in the monthly publication 'Banks and money: national series'. Loans to households increased by 2.4 per cent over twelve months (2.2 in January), while loans to non-financial companies increased by 7.6 per cent (7.3 in the previous month). Private sector deposits grow Private sector deposits grew by 11.3 per cent over twelve months in February 2021 (compared to 12.3 per cent in January). This is what the Bank of Italy reports, explaining that, on the other hand, bond funding decreased by 6 percent over the same period of the previous year (-6.4 in January). Bad loans decreased by 19 per cent over twelve months (in January the reduction was 19.3 per cent); the change may be affected by the effect of securitization transactions. Mortgage rates slightly up to 1.65% In February, interest rates on loans disbursed to households for the purchase of homes during the month, including ancillary costs, stood at 1.65 per cent ( 1.61 in January), while those on new consumer credit disbursements at 8.11 per cent (8.03 in the previous month). The interest rates on new loans to non-financial companies, continues Bank of Italy, were equal to 1.15 per cent (1.17 in January), those for amounts up to 1 million euro were equal to 1.83 per cent, while the rates on new loans exceeding this threshold stood at 0.69 per cent. The interest rates on all outstanding deposits were 0.33 per cent (0.32 in the previous month). Bad loans down by 19% with securitization effect