MILAN, Oct 20 (Reuters) - Bank lending fell slightly in September, data showed on Tuesday, adding to a string of gradual improvements in credit conditions in a country that emerged from a three-year recession at the end of last year.
Loans to households and non-financial companies shrank in September by 0.2 percent from a year earlier, Italian banking association ABI said.
This was the smallest annual fall since April 2012 and compared with a 4.5 percent contraction in bank lending in November 2013, the worst month for credit in the country.
September was, however, the 39th month in a row of falling bank lending in Italy.
Corporate credit has shrunk by an overall 90 billion euros ($102 billion) over the past four years, according to the Bank of Italy. ($1 = 0.8801 euros) (Reporting by Francesca Landini)