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Italy bank lending shows sign of stabilising after 3-yr drop
July 14, 2015 / 1:09 PM / 2 years ago

Italy bank lending shows sign of stabilising after 3-yr drop

MILAN/ROME, July 14 (Reuters) - Bank lending to Italy’s private sector showed signs of stabilising in June after three years of decline, statistics published by Italian banking association ABI showed on Tuesday.

Loans to households and non-financial companies last month fell 0.1 percent from a year earlier, according to monthly data.

It is the best result since April 2012, which was the last positive month for bank lending, and comes after a 0.6 percent contraction in May, ABI said.

The average interest rate charged on loans to the private sector was 3.42 percent in June, down 1 basis point from May, to mark a new record low.

In particular, the average interest rate on new corporate loans fell to 2.10 percent, its lowest in five years, from 2.17 percent in May.

Italian banks have accumulated 194 billion euros ($214 billion) in gross bad loans as a three-year economic recession bankrupted thousands of businesses, figures published by Bank of Italy showed earlier this month. ($1 = 0.9062 euros) (Reporting by Francesca Landini and Stefano Bernabei; editing by Agnieszka Flak)

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