Banks will resume extending
credit in 2015 but it will be a gradual affair, Bank of Italy
Governor Ignazio Visco told a Lower House hearing on Monday.
"The recovery in bank lending will necessarily be gradual,"
Visco said.
"We estimate loans to non-financial companies will resume
growth not before mid-2015, while loans to families could
increase in the first months of the year".
Banks and financial intermediaries "have made explicit their
intention of using low-cost financing obtained through (the
European Central Bank's targeted lending program) TLTRO to
support lending to businesses and families".
"It is essential for that to happen," Visco said.
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