MILAN, July 8 (Reuters) - Bad loans at Italian banks rose 21.7 percent on the year in May after having risen 22.3 percent the previous month, data from the Bank of Italy showed on Tuesday.
The economic crisis has taken its toll on bank balance sheets in the last few years with non-performing loans triggering a series of write downs.
Italian banks cut lending to companies by an annual 4.7 percent in May following a cut of 4.4 percent the previous month, the Bank of Italy also said.
Deposits at Italian banks rose 2.7 percent on the year in May, compared with growth of 1.4 percent in April, it said.
Reporting by Stephen Jewkes