Bank of Italy has announced certain measures to address the impact of COVID-19 pandemic. The central bank announced some temporary measures regarding resolution to mitigate the impact of COVID-19 for less significant intermediaries. Bank of Italy has also adopted measures to support lending to small and medium-size enterprises and to facilitate the access of Italian banks to the liquidity offered by the Eurosystem.
In May 2020, the Governing Council of ECB approved the first set of measures to extend Bank of Italy's scheme for additional bank loans (Additional Credit Claims, ACC). These measures entered into force on May 25, 2020 and will be applied until September 2021. In June 2020, Bank of Italy adopted further measures to extend the Additional Credit Claims scheme. In June 2020, the Governing Council of ECB approved a second series of measures to extend the Bank of Italy's scheme for additional bank loans (Additional Credit Claims, ACC). The measures are aimed at supporting the flow of credit to households and businesses and favoring the access of Italian banks to central bank liquidity. The aforementioned measures will enter into force on June 17, 2020 and will be applied until September 2021.
Additionally, as part of the actions taken in response to the pandemic, ECB and Bank of Italy have introduced extraordinary measures to expand the value of the assets that can be transferred to guarantee monetary policy operations, by easing the criteria of suitability and risk control. Bank of Italy has expanded the national scheme related to additional bank loans, allowing banks to allocate loans supported by the state guarantee pursuant to the Liquidity Decree. Bank of Italy, along with other Italian authorities, has also published a set of suggestions that public administrations can follow to reduce the risk of accepting invalid financial guarantees. Various suggestions have been provided, including how to ascertain whether the guarantee is issued by a legitimate subject, the methods for understanding whether the guarantee envisaged is false, and the compliance of the contractual conditions with the provisions of the legislation and/or the contract notice.
Related Links (in Italian)
- Notification on Resolution Measures for Less Significant Intermediaries
- Notification on Measures to Extend Additional Credit Claims Scheme, June 2020
- Notification on Measures to Extend Additional Credit Claims Scheme, May 2020 (PDF)
- Notification on Asset Expansion Measures
- Notification on Suggestions on Financial Guarantee (PDF)
Keywords: Europe, Italy, Banking, COVID-19, SME, Reporting, Loan Moratorium, Credit Risk, Loan Guarantee, ECB, Bank of Italy
Previous ArticleFED Releases DFAST Methodology and FR Y-14 Forms and Instructions
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
BIS announced that it will establish new Innovation Hub centers across Europe and in North America in cooperation with member central banks.
FED updated the reporting form for FR 2052a, which is used to monitor the overall liquidity profile of certain supervised institutions.
PRA published a statement that sets out its views on certain amendments made to Capital Requirements Regulations (CRR and CRR2) via EU Regulation 2020/873 (CRR "Quick Fix"), including some guidance for firms.
The Climate Financial Risk Forum (CFRF), which is a joint climate risk forum of FCA and PRA, published a guide written by the industry for the industry to help firms approach and address climate-related financial risks.
IAIS published an application paper on liquidity risk management for insurers.
EBA published its response to the EC consultation on a new Digital Finance Strategy for Europe.
EIOPA responded to the EC consultation on a new digital finance strategy for Europe.
ESMA published its response to the EC consultation on the new digital finance strategy for EU.
FSB published, for consultation, a report on evaluation of the too-big-to-fail (TBTF) reforms for systemically important banks.