The economic slowdown continues to depress demand for bank loans to households and businesses that are also pricing in the ECB's monetary tightening.
As shown by the monthly ABI report in September 2023, loans fell by 3.8% compared to a year earlier, while in August 2023 they had fallen by 3.5%, when loans to businesses had decreased by 6.2% and those to households by 0.6%.
The average rate on new mortgages fell slightly. According to the monthly report Abi in September it was equal to 4.23%, in August it was 4.29%. The average rate on new business financing operations was 5.35%, in August it was 5.01%. The average rate on total loans was 4.55%, in August it was 4.48%.
In September, the rate on new fixed-term deposits rose to 3.57% from 3.39% in August (+18 basis points). This is what the ABI communicates in the monthly report according to which "in August 2023 this rate was higher than the average of the euro area in Italy (Italy 3.39%; euro area 3.28%)". Compared to June 2022, when the rate was 0.29% (the last month before the ECB rate hikes), the increase is 328 basis points. The yield on new fixed-rate bond issues in September 2023 was 4.42%, (1.31% in June 2022), an increase of 311 basis points. The average rate on total deposits (certificates of deposit, savings deposits and current accounts), increased to 0.83% from 0.79% in August (0.32% in June 2022). The rate on current account deposits alone grew to 0.44% from 0.41% in August, "bearing in mind that the current account allows you to use a multitude of services and does not have the function of investment", reiterates the Abi.
Bond deposits continue to grow, at the expense of deposits. As shown by the monthly ABI report in September, medium and long-term funding through bonds grew compared to a year earlier (+16.9%), accelerating compared to August 2023 (+16.4%). Deposits alone, in the various forms, therefore fell in September 2023 by 4.2% compared to September 2022, recording a slowdown in the reduction (-5.5% in August 2023). Also according to the ABI, the rate on new deposits with a fixed duration is 3.57% while on new bonds it is 4.42%.
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