Italy banks cut loans to business, bad debts up

MILAN Thu Jan 10, 2013 4:39am EST

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MILAN Jan 10 (Reuters) - Private sector deposits held at Italian banks rose again in November but loans to businesses continued to decline, Bank of Italy data showed on Thursday.

Data from the central bank showed that private sector deposits rose 6.6 percent in November from a year earlier, after an increase of 4.7 percent in October.

Lenders however did not pour that money back into the economy, and loans to non-financial firms fell 3.4 percent - the seventh consecutive monthly decline.

Bad loans, a major concern for investors, rose by 16.7 percent from a year earlier. (Reporting By Silvia Aloisi; editing by Danilo Masoni)

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