Italian bank lending to families and businesses hits highest since late 2022

Bank lending to Italian families and businesses experienced a significant upswing in May, marking a 3% year-on-year increase. This growth represents the largest rise since November 2022, consolidating a positive trend that began in March 2025.

The data, released by the Italian Banking Association (Abi) in its monthly report, shows that lending to households grew by 2.6%, while corporate lending saw a slightly higher increase of 3.1%.

Despite the expansion in loan volumes, the average interest rate on existing loans remained steady at 4.04%, a level not seen since May 2025. However, there was a slight decrease in the average rate for new loans to businesses, which fell to 3.51% in May from 3.56% the previous month. For context, the average rate for new business loans was 5.45% in December 2023.

The average interest rate on new mortgages also saw a marginal increase, rising to 3.49% in May from 3.47% in April. This contrasts with the higher rate of 4.42% recorded in December 2023.