The unleashed effect of rising rates is hitting bank loans: there has been a nearly €50 billion credit crunch over the past year, with a reduction exceeding 3%. Banks have cut all types of business loans, with a reduction of €39 billion (-6%). As for households, the balance is negative by €10 billion, considering that mortgages are essentially stationary, consumer credit has grown by €5 billion, while personal loans have plummeted by nearly €14 billion. This is according to the monthly credit report produced by the Unimpresa Study Center, which says that in this context, bank customers are struggling to meet their due dates with loan installments so much so that net non-performing loans grew by nearly 10%in one year, from €16 billion to nearly €18 billion, up nearly €2 billion.
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