“Never applied negative interest rates to deposits”

“Banks in Italy maintain nearly two-thirds of mortgages at fixed rates, with funding rates constantly increasing, and upon request they can extend the term of mortgages for those on track with their payments or making assignments.” According to the President of ABI, Antonio Patuelli, in his report to the Assembly of the Italian Banking Association. “Banks in Italy have never applied negative interest rates on deposits and are increasingly rewarding savers with competitive market rates, including those offered by European sovereigns and non-bank operators. They offer savers, also to ward off inflation, investments for medium and long-term liquidity, indispensable after the end of the LTTRO to finance companies and households”, he adds.

Tltro is an acronym that stands for Targeted Longer-Term Refinancing Operations, which differs from other central bank funding operations in that it is “targeted.”

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