Payday loans are growing
DFO Report: payday loans are growing
Italian families are increasingly demanding payday loans and banking institutions in our country are increasingly inclined to provide credit. Here is the dynamics highlighted by the DFO made known only a few days ago with its usual monthly report on the performance of the sector. It is not only private loans that are growing at a good pace, but also corporate loans and home mortgage applications.
Going into more detail, as at 30 June 2018 the loans that the banks granted to Italian households and companies recorded an increase of 2.6% on an annual basis, confirming once again the positive performance of the sector which now continues uninterruptedly for some months now. The trend also witnessed by the Bank of Italy, is further reinforced if one takes into account the ‘performance of mortgages in May has racked up + 2.3% compared to the same period of the previous anno.Sul terms of interest rates applied to loans, in June 2018, these stand at a new all-time low with an average rate on total loans at 2.60%, compared to 2.63% in the previous month and 6.18% in 2007, before the crisis. The same trend of the rates in reduction also on the operations of financing to the companies that are positioned on the 1.37% compared to the previous month when they were on 1.43%, 5.4% at the end of 2007.
Net non-performing loans also declined to stand at € 4.9 billion in May 2018, down compared to the € 50.9 billion reported the previous month; over the last 17 months, non-performing bank loans fell by 43%. According to the DFO report in June, deposits from customer deposits also increased in our country, reporting + 6.3% on an annual basis. Overall we are faced with a decidedly encouraging picture that gives us hope for a brighter future for the entire Italian economy.