Bank of Italy: Private Sector Credit Rose 3.7% in August
- Italian private sector credit expanded by 3.7% year-on-year in August 2026, accelerating from a 3.5% growth rate in July, according to data released by the Bank of Italy...
- The Bank of Italy published its Banche e moneta report on October 9, 2026, showing that loans to households increased by 2.9% annually in August, up from 2.6%...
- On the funding side, private sector deposits grew by 1.8% year-on-year in August, slowing sharply from a 2.4% increase in July.
Italian private sector credit expanded by 3.7% year-on-year in August 2026, accelerating from a 3.5% growth rate in July, according to data released by the Bank of Italy and cited by Milano Finanza. The figures point to rising borrowing costs for households alongside diverging trends in corporate loans and bank deposits.
August 2026 Private Sector Lending Data and Bank of Italy Figures
The Bank of Italy published its Banche e moneta report on October 9, 2026, showing that loans to households increased by 2.9% annually in August, up from 2.6% in July. Non-financial corporations saw an even larger increase, with lending growing by 4.2% compared to 4.1% the previous month. Il Sole 24 Ore corroborated these lending figures in its reporting of the central bank release.
On the funding side, private sector deposits grew by 1.8% year-on-year in August, slowing sharply from a 2.4% increase in July. Meanwhile, bond issuance accelerated, with debt securities held by the private sector climbing 5.9% compared to 5.6% in July. Passive rates across all outstanding deposits remained flat at 0.69%.
Rising Mortgage Rates and Consumer Credit Costs for Italian Borrowers
The cost of new home loans for Italian families climbed in August, as the Annual Percentage Rate (known as Taeg) on new mortgages rose to 3.99% from 3.81% in July. Milano Finanza reported that the share of new loans with an initial rate fixation period of one year or less dropped to 23.9%, down from 29% the previous month.
Consumer credit experienced a much sharper increase. The Taeg on new consumer loan disbursements jumped to 10.78% in August, up from 10.38% in July. In contrast, the average interest rate on new loans to non-financial corporations dropped to 3.71% from 3.79% in July, though borrowing costs varied heavily by loan size.
Loan Rates Vary by Size as Remittances Decline
Corporate borrowing costs masked stark differences based on the size of the financing package. For loans up to one million euros, the average interest rate settled at 4.40%, while loans exceeding that threshold secured an average rate of 3.30%.
Unresolved Trajectories for European Monetary Policy and Household Debt
Whether consumer credit costs and mortgage rates will continue climbing through the final quarters of 2026 remains undetermined by the central bank data.