Italian banks’ lending to firms sees new record drop in September

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MILAN, Nov 10 (Reuters) – Loans by Italian banks to businesses fell further in September, posting a new record drop, Bank of Italy data showed on Friday.

Bank credit to firms fell 6.7% year-on-year in September, the biggest fall on record according to Reuters calculations based on Bank of Italy data, following a 6.2% drop in August.

A string of hikes by the ECB, whose key rate on deposits stands at a record high of 4%, make it much more expensive for firms to borrow.

Reporting by Sara Rossi, editing by Giulia Segreti

Our Standards: The Thomson Reuters Trust Principles.

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