In the South of Italy, borrower risk is on average greater than in the Centre and North, but in March the rate of growth of bank loans in the South exceeded that in the other parts of the country, even though the cost of a loan was 1.7 percentage points higher on average. The deterioration in loan quality is increasingly affecting bank profits.
More than 12 projects have already been carried out since the MoU was signed in 2015, and the list of projects in the pipeline is very long. Last but not least, Dr Rennert’s profound expertise on macroeconomic and political developments in the region has helped shape opinion at the highest echelons of the Bundesbank.