The flop auction ECB: in January to close new loans – The Republic

MILAN – Back to accelerate the contraction of lending by banks to the economy, especially to businesses. And ‘what emerges from the monthly note released by the Bank of Italy on the progress of January. Data show that the measures taken at the ECB (which are deployed in full by Monday, March 9 with the start of the Quantitative easing , but were widely expected by institutions) still fatichino to move oxygen for business. We must also consider, in fact, that last January had already held the two auctions Tltro of the ECB (the second in mid-December to 130 billion, the first for a little over 80 billion) that have brought money at virtually zero cost to the banks, but they should be used in the real economy and not investing in government bonds or similar. The announcement of the June 5, in fact, the ECB explained that those auctions were “aimed at improving the provision of bank loans to non-financial private sector in the euro area.”

Apparently, those Money does not have inflated the lending channel in the Italian system. Bankitalia is said that loans to the private sector fell by 1.8% per annum, compared to -1.6% in December. If families have remained flat at 0.5%, to business trends worsened from -2.3 to -2.8%. Continues to increase the mass of loans , the loans to be unrecoverable: the growth rate slightly increased to 15.4%.

Here are the main items of the balance sheets of Italian banks , spread from Via Nazionale:

Collection . In January, the annual growth rate of deposits of the private sector amounted to 5.0 per cent (4.0 per cent in December). Bond funding, including bonds held by banks, declined by 17.7 percent year on year (-17.3 percent in the previous month).

loans. Loans to the private sector, adjusted for securitization and other receivables sold and removed from bank balance sheets, shrank year on year by 1.8 per cent (1.6 per cent in December). Loans to households fell by 0.5 percent year on year, as in the previous month; those non-financial companies fell, year on year, by 2.8 per cent (-2.3 per cent in December).

Non- . The rate of annual growth of the suffering – without correction for securitisations but taking into account the discontinuity statistics – stood at 15.4 percent, in line with the 15.2 percent recorded in December.

Interest rates. The interest rates, inclusive of fees, on loans in the month to households for house purchase amounted to 3.06 percent (3.08 in previous month); those on new loans for consumer credit to 8.71 percent (8.10 percent in December). Interest rates on new loans to non-financial companies of up to 1 million euro amounted to 3.32 percent (3.31 percent in the previous month); those on new loans for amounts exceeding this threshold to 1.93 percent (2.15 percent in December). The rates paid on deposits in the complex be amounted to 0.67 percent (0.73 percent in the previous month).