The figures for the month of October were expected, the first full month following the EB’s liquidity auction, precisely in order to verify the effect of the same on the credit dynamics of our country. However, the result that seems to come from the effort of the continental central bank is much lower than expected, if only it is thought that loans to the private sector by Italian banks continued to contract. The only reason for consolation, quite partial, is that the negative trend seems to progressively lose its strength, at least based on the Bank of Italy surveys.
Credit to families
As far as the private sector is concerned, loans fell 2.1% on an annual basis, a correct figure so as to take into account securitisations and other receivables that after being transferred were written off from the financial statements. The contraction, however, stands at 2.3% if the September figure is taken as a basis. The contraction recorded by credit to families was more contained, which fell by 0.6 per cent over the last year, while they showed a decrease of 0.7% on a monthly basis. However, the figures for non-financial companies are more negative, down on an annual basis, by 3.1 per cent and 3.3 per cent compared to the previous month.
With regard to funding, in October the annual growth rate of private sector deposits reached 2.3 percent, while in September the rise reached 3.6 percent. Very negative instead the figure of bond funding, which must be included in the bonds held by the banking system, actually dropped by 17.4 percent compared to twelve months earlier, and 14.2 percent against the growing settembre.Ancora bad loans, with a figure that touched +19.3 percent on an annual basis, 19.9 percent compared to the previous month.
On the other hand, interest rates on mortgage loans disbursed to households in October fell slightly, including ancillary costs, with a figure of 3.18 per cent, compared to 3.27 per cent in the previous month. With regard to new consumer credit disbursements, the new survey decreased from 9.24% in September to 8.97%. The same trend for interest rates relating to new loans to non-financial companies with an amount of up to one million euro, which reached 3.54 per cent, against 3.60 per cent in September. Above the million threshold, the rate is 2.16 percent, compared to 2.43 in the previous month. Finally, the interest rates on total outstanding deposits remained at 0.79 per cent, the same as in September.
As can be understood from the data, the effort put in place by Mario Draghi, in an attempt to supply petrol to the engine of recovery by inserting resources in the banking system with the aim of transferring it to families and businesses, has therefore not yielded great results.