Featured Product

    EC Approves Prolongation of Italian Guarantee Scheme for NPLs

    May 27, 2019

    EC approved, under the EU State aid rules, the extension of Italian guarantee scheme on securitization of non-performing loans, NPLs (Fondo di Garanzia sulla Cartolarizzazione delle Sofferenze—GACS). Under the scheme, Italian banks meeting certain conditions will not be able to provide a guarantee of a higher rate of return. The more risky funding tranches of the securitization vehicles are likely to be sold to private investors and will not be guaranteed by the State. This authorization is granted until May 27, 2021.

    The concept was originally approved in February 2016 and last prolonged in August 2018. By assisting banks to securitize and move NPLs on their balance sheet, the scheme is an important component of the strategy of Italy to tackle asset quality problems of banks and has already made a significant contribution. Between February 2016 and November 2018, the scheme has been accessed seventeen times, removing EUR 51 billion (gross book value) of NPLs from the Italian banking system, which corresponds to almost two-third of the total reduction of NPLs in Italy during the period. EC has made this assessment in accordance with the terms of reference, the State guarantees and the conditions of the market, and the conditions for taking them into account. 

     

    Related Link: Notification

     

    Keywords: Europe, Italy, EU, NPLs, State Aid Rules, Securitization, Guarantee Scheme, EC

    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836