Financial wealth exploded with “whatevet it takes”: over 5 trillion billion in 2021

Financial wealth exploded with whatevet it takes over 5 trillion

(Finance) – The financial wealth of the Italians literally exploded with 10 years of “wathever it takes” that is with the ultra accommodative policy of the ECB, reaching over 5.256 billion euros in 2021with a growth of almost 1,700 billion (+ 50%) compared to 2011. This is what emerges from a report by the FABIthe representative union of bankers.

In 2021the year in which the economic recovery began, which then vanished with the start of the war between Russia and Ukraine, the savings of Italian families generated a flow of 320 billion euros: 61% of the new wealth set aside, equal to 143 billion in absolute terms, was allocated to financial assets (mainly shares), 16% (72 billion) to liquidity, the remainder to alternative forms of savings.

The passion for liquidity never fades

Liquidity remains the preferred way of allocating savings: the cash is always “the most loved by Italians” having recorded a growth of 509 billion (+ 45%), from 1.119 billion in 2011 to 1.629 billion of 2021. The percentage of money left on current accounts and deposits is stable at 31% of the total of the masses.

Lots of equity and growing insurance policies

The le bonds seem destined for a dramatic reduction in savers’ portfolios (-67% or 479 billion), for a total of loans of 233 billion, replaced by insurance policieswhich are gaining ground (+ 78% or 533 billion), reaching 1,213 billion, equal to 23% of total savings. The weight of the actions increased progressively: it was 690 billion and represented 19% of household reserves in 2011, a figure that rose to 1,107 billion in 2020 (22%) and then again to 1.251 billion in 2021touching the 24% of the total of financial portfolios.

The boom in mutual funds

The need for wealth planning together with careful and prudent financial risk management may have also supported investments in Mutual funds: from the total 235 billion in 20210 equal to 6% of household financial assets, it went to 13% in 2020 with 681 billion and to close to 15% in 2021 with 661 billion; in percentage terms, this was the most significant growth over the decade (+ 227%). However, the growth mainly favored foreign funds, which in the decade went from 89 billion to 536 billion (+ 60%), while the “tricolor” ones increased by just 88 billion from 146 billion to 234 billion (+498 %).

Avoid canceling “whatever it takes” effects with patrimonial

“The decisions taken to save the euro at all costs, in July 2012, by the European Central Bank, then headed by President Mario Draghi, protected the savings of Italians, which grew by almost 50%. Those measures, therefore, not only they have preserved the single currency, but they have also strengthened the financial wealth of our families which, today, should be more considered in the electoral programs of the parties in view of September 25 and the future government “, comments the general secretary of the FABI, Lando Maria Sileoniwhich asks the parties in contention for “serious and concrete proposals” and of avoid “harmful” fiscal interventions such as the patrimonial.

Liquidity also loved in the rest of Europe

The report also compares data from some European countries, which show that the ability to cope with emergencies with cash reserves is not just an Italian art. The composition of the financial piggy bank of many countries across the border shows the point of view of the Germans and the Spaniards on the destination of their savings: they too prefer liquidity, considering it a practical and vital lifesaver for families.

The actions and Mutual funds of investment, immediately after deposits and cash, constitute the most relevant part of the wealth citizens’ finance for many European states, with percentages on the total ranging from 26% in Germany, passing to 29% in France up to the primacy of 43.8% in Spain. Italy, with its 39% percentage invested in equities, is second after Spain, but boasts the primacy of the portfolio share destined to government bonds, which represents 4.3% of the total, compared to an average European by 1.6%.

Virtuous Italians and unwilling to go into debt

In the Western European landscape, the map of net financial wealth describes the Italians as a virtuous people and, despite the income uncertainties and the increased spending also due to the surge in inflation, the less inclined to support needs and consumption by resorting to debt.

With respect to disposable income, in Italy the percentage of debt is 6%, while in France it is 1%, just over 0.9% in Germany and Spain. It follows that net financial wealth is, compared to disposable income, equal to 3.4% in Italy, 2.8% in France, 2.6% in Germany and 2.5% in Spain.

Despite the increase in poverty and the growing difficulty of families to cope with unexpected expenses, the percentage allocated to home loans is only 0.4%, a figure lower than that of France, Germany and Spain which on average absorb 0.7% for financial commitments. For all Western countries, home loans represent 70% of the financial resources committed to loans, while for Italy almost half and equal to only 40% of total loans.

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