The Countercyclical Capital Buffer (CCyB) rate for the first quarter of 2022 has been set at zero per cent

Summary

The Bank of Italy has decided to keep the countercyclical capital buffer rate at zero per cent for the first quarter of 2022.

In the third quarter of 2021, the credit-to-GDP ratio decreased. The deviation from the long-term trend of the total credit-to-GDP ratio became negative by about 5 percentage points, if calculated based on the model developed by the Bank of Italy. Similar findings come from the bank credit-to-GDP ratio.

The dynamics of the credit-to-GDP gap were influenced by the strong growth of GDP in the denominator. Furthermore, the growth in credit to the private sector weakened, mainly owing to the slowdown in loans to firms because of the improved profitability and ample cash holdings.

The other indicators indicate an improvement in the macro-financial conditions of the Italian economy. The NPL ratio decreased for firms, mainly owing to sales of NPLs, while it remained stable for households; the unemployment rate fell slightly, thanks to the decrease in the number of job seekers following the rise in employment, remaining below pre-pandemic level; real property prices increased.