ROME, April 18 (Reuters) - Italian bank loans to
families and firms rose by 0.5% in March from the year before,
slowing from a 1% increase in February due to interest rate
hikes by the European Central Bank, the country's banking
association ABI said on Tuesday.
The average interest rate on bank loans stood at 3.81% in
March, the highest since June 2014, while the rate on new loans
to companies averaged 3.9%, the highest since January 2012.
"The important thing now is that the increase in rates
doesn't hurt the economy ... that we can fight inflation without
slowing down growth too much," ABI's deputy director general
Gianfranco Torriero told reporters.
Bank funding from bonds and deposits fell by 1.6% in March
from the year earlier, with deposits from residents in Italy
declining by 2.9%.
Banks are now beginning to remunerate deposits more
generously provided they have a guaranteed duration, ABI said.
In February, the most recent month for which this data was
available, the average rate on term deposits stood at 2.5%,
compared with 0.57% in February 2022.
(Reporting by Gavin Jones
Editing by Mark Potter)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.