MILAN, Aug 12 (Reuters) - Italian banks’ lending to firms fell in June and their domestic government bond portfolio continued to shrink, central bank data showed on Monday.
Corporate loans were down 0.9% on a yearly basis in June, after falling 0.2% the previous month.
Banks reduced their holdings of Italian government bonds by a couple of billion euros, to 389.97 billion euros ($435.44 billion) in June.
Bad loans before writedowns were down in June at 89.79 billion euros, the data showed. Net of writedowns, bad loans stood at 31.59 billion euros in June from 32.59 billion euros in May. ($1 = 0.8956 euros) (Writing by Alessia Pé, editing by Francesca Landini)