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

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425