The Bank of Italy’s survey reveals that credit demand has declined, especially among construction and manufacturing companies in the South. Consumer financing for households remains stable.

The Italian economic situation suggests caution in requests for financing from banks, especially from companies due to weak investment activity: this is confirmed by the survey Regional Bank Lending Survey, conducted by the regional branches of the Bank of Italy on a sample of 237 banks and relating to the second half of 2024. The document shows that the credit requests from businesses has decreased in all areas of the country. However, the demand for mortgages for home purchases on the part of families, in the face of a substantial stability in requests for credit for consumer purposes.

Business credit application

In the manufacturing sector, in detail, it emerged that mortgage conditions have actually become more favorable in many cases, thanks to greater competition and despite an increased perception of risk. Demand has decreased particularly for construction companies of the regions of Central and Southern Italy, for the manufacturing regions of Southern Italy and for the services sector in Central and Northern Italy. According to Bankitalia, the reduction in demand was influenced by the slowdown in investment activity and the widespread use ofSelf-financing.

Mortgages to households and deposits

The demand for mortgages for the purchase of homes has increased everywhere. homes by households, while consumer credit applications remained largely stable. Home mortgage lending policies, which had tightened slightly in the first half of the year, were moderately relaxed in the second half. The average term of mortgages issued in 2024 decreased slightly, and the loan-to-value ratio at origination remained essentially stable.

The conditions for offering loans for consumer purposes have been based on a greater caution compared to the first half of the year. According to the survey Regional Bank Lending Survey of Bankitalia, in the second half of 2024 it also started to increase again demand for deposits on the part of savers and banks have reduced the remunerations recognised on collection instruments