Italy Banks’ Bad-Loan Ratio Rises to Highest Since 1999
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Bad loans at Italian banks climbed to the highest in almost 14 years as the nation’s economy endured its longest recession since World War II and sovereign-debt risks drove up funding costs for companies.
Non-performing loans at face value as a proportion of lending increased to 7.5 percent in September from 5.9 percent a year earlier, according to data published by the Italian Banking Association today. That’s the highest since November 1999 and up from 3 percent in June 2008, prior to the financial crisis, said the Rome-based association, known as ABI.