In the second half of 2022 the business credit demand has shrunk in all areas of the country, after the expansion observed in the first half of the year, with a more marked decline in the South. This is what emerges from the investigation Regional Bank Lending Surveyconducted by Bank of Italy on a sample of 244 banks.
The contraction concerned the sectors manufacturing and tertiary in all territorial divisions, while the demand from construction companies decreased only in the North East. The reduction was affected by the lower financing needs of investments and, in the Centre, also those of restructuring of debt positions past.
In the same period the lending policies of banks to businesses they turned out moderately stiff, in particular towards central-northern companies and construction companies. Banks have reported a increase in spreads applied to business loans, especially for companies judged to be more risky, in connection with an increase in perceived risk and funding costs.
The application for mortgages
Also second half of 2022, the demand for loans for the purchase of houses and credits for consumption purposes by households has decreased sharply in all areas of the country, after the expansion observed in the first part of the year.
I offer criteria of loans for house purchase were stiffen in all macro-areas, reflecting both the increase in the cost of funding and the greater perceived risk. The tightening of policies for the offer of loans to households has been partly mitigated from the enhancement implemented in the two-year period 2021-22 of the operations of the Guarantee fund for the first homefrom which the younger clientele especially benefited.
Loans made
Even the conditions practiced on consumer loans they got worse in all territorial divisions. For new mortgage disbursements, both the share of loans disbursed with one increased markedly extended deadline (30 years of age or older) and those with a loan to value ratio at origination (ratio between the value of the loan and the value of the property) greater than 80%. only 30% of mortgages included forms of flexibility in repaymentssuch as the possibility to extend the length of the amortization period or temporarily suspend payments.
In the second half of 2022 savers have strongly increased the demand for government bonds and, to a lesser extent, bank bonds and deposits (also other than current accounts); on the other hand, the demand for asset management products and equity securities decreased. (Ticker)