(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 first quarter of 2024, the deviation of the ratio between total credit and GDP from its long-term trend (credit-to-GDP gap) remained substantially stable and negative for approximately twelve 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 credit dynamics remains for the private sector weak. Furthermore, the incidence of non-performing loans remains at historically low levels and the unemployment rate is further decreasing. In the fourth quarter of 2023, real house prices remained unchanged compared to the previous quarter.