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
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEBA Updates Single Rulebook Q&A in June 2020
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.