MILAN, Oct 11 (Reuters) - The pace of growth in Italian bank lending to businesses slowed further in August, falling to its lowest level since February 2020 after a credit surge fuelled by state guarantees, data showed on Monday. A monthly Bank of Italy report on the balance sheets of domestic banks showed loans to non-financial companies grew by 1.2% year-on-year in August, down from a 1.8% rise in July. Reporting by Sara Rossi, editing by Valentina Za Our Standards: The Thomson Reuters Trust Principles.