Loans by Italian banks to businesses fell for an 11th straight month in December, but at a slower pace than the previous month, Bank of Italy data showed on Friday.

Bank credit to businesses declined 3.7% year-on-year, the Bank of Italy said, following a 4.8% drop in November.

Deposits stood at 2.42 trillion euros ($2.61 trillion), up from 2.39 trillion in November.

Italian residents' deposits with domestic banks fell 3.1% year-on-year after a 4.1% decline in November, the data showed.

Banks increased their bond issuance, with sales up 19.3% yearly in December from a 19.7% rise the previous month. ($1 = 0.9282 euros) (Reporting by Sara Rossi, editing by Gavin Jones)