(Finance) – The Bank of Italy consider the countercyclical capital buffer ratio in force for the current quarter, equal to zero percent, appropriate to the current macrofinancial environment.
In the third quarter of 2024 it deviation in the ratio between total credit and GDP from its long-term trend (credit-to-GDP gap) it was negative by approximately thirteen percentage points if calculated based on the methodology developed by the Bank of Italy. Similar indications come from the relationship between bank credit and GDP.
There dynamics of credit to the private sector remains weak. The incidence of overall impaired loans remains at historically low levels; the unemployment rate decreased further. In the second quarter of 2024, real house prices increased compared to the previous quarter.