Bank deposits in free fall: Italy loses 43 billion euros

A recent report revealed that bank deposits in Italy have decreased by 43 billion euros over the past year.

What happened

Bank deposits in Italy recorded a decrease of 43 billion euros over the course of a year. Despite this, Sardinia and Basilicata showed an opposite trend, with an increase of 21 million euros (+0.1%) and 50 million euros (+0.5%) respectively. The other Italian regions instead recorded a negative balance.

Lombardy suffered the largest loss, with a negative balance of 13.7 billion euros. Emilia Romagna follows with a deficit of 5.4 billion euros (-5.2%) and Piedmont with a loss of 4.7 billion euros (-5.09%).

According to Autonomous Federation of Italian Bankers (FABI), bank deposits constitute a significant part of the country’s wealth and represent an indirect profit for the banks. “Given such important figures, the well-paid current account could represent an attractive factor for banks,” said Lando Maria Sileoni, general secretary of FABI.

FABI also noted that families who leave their savings deposited in their current accounts earn little. For example, by depositing 5,000 euros, the remuneration is 18.2 euros in Trento and Bolzano, 15 euros in Florence, 13 euros in Rome, 11 euros in Milan and Perugia.

FABI highlighted that there are notable territorial and regional divergences in the returns that banks offer to their customers. The national average of the interest rate charged by banks for a current account of up to 50,000 euros at the end of 2023 is 0.21%, but there are very different levels in the 20 regions of the country.

Because it is important

Despite the lack of background articles, it is important to note that the decline in bank deposits may have significant implications for the Italian economy. Bank deposits represent a source of funding for banks, which in turn provide loans to businesses and consumers. A decrease in deposits can therefore limit banks’ ability to lend, potentially dampening economic growth.

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