In: savings and liquidity of families In Sicily, they are becoming rarer. THE: bank deposits of families and businesses In Sicily, they decrease by 0.4% annually, after a two years of growthMeanwhile, liquidity in current accounts “decreased by 2.9%, a phenomenon that only affected families.” This is the latest data Assoesercenti Sicilia credit report, Updated to 2023. Banks are also dwindling on the island, with only 41 institutions operating. own branches, of which 15 have the administrative headquarters in the province, “sharp decrease compared to the past”.
Speaking of branches, they decreased by 56 points compared to 2022, “bringing. number of communities served from banks 253 to 244″. If banking services have stopped, it is only “thanks to 756 post offices andincrease in domestic banking agreements, which reached 53.7 per 100 inhabitants in 2023, compared to 50.7 in 2022.” A sign of a sector that is struggling “significant transformations” the reduction of which was “affected consolidation operations, especially in the region cooperative credit banks“.
Families, less savings and liquidity in Sicily
Assoesercenti highlights impact of digitization, which “promoted growthusing online bank transfers, which reached 92% the total amount of transfers made from Sicilian families.” What about? funding, In 2023, “non-financial private sector growth stalled, registering a -0.2% annual variation in December,” stagnation due to “ a decline in loans to businesses and the slowing of families is affected raising interest rates and with a decrease in the demand for credit.
As for business, the downturn has “affected all major sectors” as well mortgage loans to families decrease is observed “although the conditions remained essentially unchanged”. Numbers in hand, «i business financing fell 1% year-on-year, compared to a 0.7% increase the same month last year“. Decline, affecting “high interest rates and since reduction of loan requirements“, it was also confirmed “in the first months of 2024”.
Surrender and delete default positions
Speaking loan not all businesses behave the same way. There funding cuts, specifically, “it’s mostly affected small businesses that they’ve seen increasingly significant cuts during the past year and in the first months of 2024.” This negative trend, the authors of the study emphasize, is interesting different economic sectors. “According to previous analyses, the decline in 2023 is largely driven funding cuts about existing credit relations at the end of the year.
It loan default rate In 2023, it increased to 1.8 percent, compared to 1.4 percent last year.” This deterioration has “mainly affected families”, while for businesses “the rate has remained stable”. What about? financial selection of institutions, from the analysis of Assurcent it turns out that during 2023 “banks continued to sell and delete default positions reducing morbidity impaired loans in December 5% in relation to general banks”.
State of government bonds
In addition to liquidity, family savings in Sicily also consist of bank deposits. As stated in 2023 “they recorded a contraction by 0.4% per year, after a two years of growth. Liquidity in current accounts fell by 2.9%, a phenomenon that only affected households, while i savings deposits increased by 4.4%”. However, the overall cost of goods is increasing securities held by banks. The latter “increased by 27.9% compared to the previous year”, which is mainly due to “inflow of resources to new problems. Italian government bonds which increased by 77.1%. Sicilian families have revised their investment preferences. “This is in response to high inflation and raising interest rates“, orienting towards more profitable financial instruments. This, the report reads, “has led to an increase in value securities market for custody. Mainly supportedinflux to new problems and price increases. Meanwhile, it is the amount of securities already in the portfolio decreased slightly“.
Comment from the president of Assoesercenti Sicilia
Concluding that credit market In Sicily in 2023 saw a consolidation of banking structures, a funding stagnation and changing household savings preferences. In response to more profitable tools orientation the current economic context. “It is necessary to improve”, comments the president of Assoesercenti Besides Politino, “The climate trust between banks and businesses. The difficulties of one and the riskiness of the other do not allow the territory to use the consequences of the new; investment recovery“. The association undertakes to do his part. “We must act for remove obstacles and structural fragilities of the area through direct interventions, such as a promote financial educationPolitino says. It is also important to “promote innovation and especially support SMEs in their relations with the banking system. Relationships that, the manager concludes, are often “characterized asymmetry and information opacity precisely because of that small company size“.