Credit Deterioration in Brescia, Italy
In the first quarter of 2024, the quality of credit granted to businesses in Brescia, Italy, experienced a deterioration, despite remaining at historically high levels. This deterioration is confirmed by the annualized loan default rate for non-financial companies, which in March 2024 reached 2.1%, mirroring levels last seen in 2018-2019.
The report attributes this trend to the weak economic climate, high interest rates, and a more cautious lending approach by banks. Notably, the incidence of loan defaults in the local industrial sector has increased significantly, reaching 99 million euros in March 2024.
The overall amount of loans available to industrial companies in the region has also declined by 12.8% compared to the previous year, the highest rate among major Italian regions. This contraction is attributed to both reduced demand for financing and increased selectivity by banks.
The report also highlights the ongoing closure of bank branches in the area, driven by cost optimization and the rise of digital technologies. The number of branches in the province of Brescia has decreased by 33.9% since 2008, leading to a reduction in territorial coverage.