Mortgages Still On The Rise: Interest Rates Rise To 2.73%

In the “safe” those who chose firmware in the past years – Variable rate mortgages after the latest European Central Bank intervention It will grow on average by about 50 euros per installment, the situation is different from “fixed”. The aggressive use, in recent years, of fixed rates for mortgages largely “immunizes” families from rate hikes decided by the European Central Bank. This was stated by ABI Deputy Director Gianfranco Torriero in the presentation of the monthly report which stated that “in the past four to five years, 80% of new mortgages have been at a flat rate” and that is also why there has been a significant increase in bad debt unexpected, in the coming months, on this sector. However, there are countries that have interfered with expensive mortgage loans with special laws, this is the case Portugal, which forced banks to renegotiate loans to troubled families.

Loans increase, deposits continue to slow – The increase in bank loans to households and businesses continued in October while deposits are declining, after sustained increases in the past months. As reported by ABI’s monthly report, loans are up 3.4% compared to last year. On the deposit front, after growing 2.3% in September and +6.5% in October 2021, it recorded +0.1%. “The group – confirms ABI Deputy Director Gianfranco Torriero – remains positive compared to last year but deposits somehow touched the ceiling.”

Dad calls for corporate measures – Banks’ bad debts remained stable in September with ABI asking to focus public resources on measures to support business over the next few months, particularly in debt restructuring in order to also keep credit quality under control. As reported in the association’s monthly report, net non-performing loans settled in September at 16.2 billion euros, and the ratio of non-performing loans to total loans was 0.92%.

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