Bankitalia: with Covid, savings flow to public debt

ROME, OCTOBER 26 – The increase in savings, caused by the Covid lockdown, of households and businesses in bank deposits has been channeled by central banks, credit institutions and funds towards government bonds issued by public administrations which have carried out “a key role”. This is what we read in the Covid Note of the Bank of Italy “. In particular, “the savings of sectors in financial surplus” that ended up in deposits saw “an equivalent flow” of purchases “by monetary financial institutions (central banks, banks and funds ed) of debt securities issued by public administrations” . (HANDLE).

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