Risk of long-term floating rate loans to individuals It has been observed that a major chunk of the loan portfolio of banks these days comprises floating rate products, especially in the retail segment, with loans for housing sector extending up to 20 years or so.
In the course of the past ten years, Italy’s gross domestic product has increased by less than 3 per cent; that of France, with about the same population, by 12 per cent. The gap perfectly reflects the difference in hourly productivity – stationary in Italy, up by 9 per cent in France.