Italian household debt after the 2008 crisis

Silvia Magri () and Raffaella Pico ()
Additional contact information
Raffaella Pico: Bank of Italy

No 134, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: After the crisis, from 2008 to 2010 the share of indebted households decreased both owing to a reduction in loan demand and stricter supply conditions. The reduction regarded mortgages and involved low-income households and the self-employed. Recourse to consumer credit remained stable; it increased for low-income households. Household debt sustainability, measured by debt as a proportion of income and assets, did not worsen; debt service for mortgages as a ratio of income decreased for low-income households. The percentage of vulnerable households i.e. those with a high debt service to income, remained unchanged from 2008 to 2010, when the sharp reduction in income was offset by a marked fall in interest rates; simulations for 2011-2012 show modest changes in this indicator. Over-indebted households i.e. those permanently unable to repay their debt, are estimated at 160,000 or 0.6 per cent of the total.

Keywords: household indebtedness; financial crises; vulnerability; over-indebtedness (search for similar items in EconPapers)
JEL-codes: D12 E51 I32 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-eur
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/qef/2012-0134/QEF_134.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_134_12

Access Statistics for this paper

More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().