EC Approves Prolongation of Italian Guarantee Scheme for NPLs
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
Previous Article
EC Approves Extension of Irish Scheme on Restructuring Credit UnionsRelated Articles
|
News
FSB Publishes List of Global Systemically Important Banks for 2019FSB published the 2019 list of global systemically important banks (G-SIBs), using the end-2018 data and an assessment methodology designed by BCBS.
November 22, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Roadmap on Risk Reduction Measures PackageEBA published a set of roadmaps outlining the approach and timelines for delivering the mandates stemming from the Risk Reduction Measures Package adopted by the European Council and European Parliament on May 20, 2019.
November 21, 2019
WebPage
Regulatory News
|
|
News
EBA Consults on Initial Reporting Requirements for Market RiskEBA launched a consultation on the implementing technical standards on supervisory reporting requirements for market risk.
November 21, 2019
WebPage
Regulatory News
|
|
News
FED Proposes to Extend Initial Compliance Dates Under SCCL RuleFED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.
November 20, 2019
WebPage
Regulatory News
|
|
News
CBIRC to Strengthen Supervisory and Policy Support for SME ServicesCBIRC released a notification on strengthening supervision and guidance to enhance the quality and efficiency of financial services for "small and micro-enterprises" (SMEs).
November 20, 2019
WebPage
Regulatory News
|
|
News
FED Adopts Proposal to Implement Reporting Form for SCCLFED adopted a proposal to implement the Single-Counterparty Credit Limits (SCCL) reporting form FR 2590.
November 20, 2019
WebPage
Regulatory News
|
|
News
APRA Publishes Approach to Regulating and Supervising GCRA RisksAPRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.
November 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Update Rule on Derivative Contracts Exposure CalculationUS Agencies (FDIC, FED, and OCC) announced a final rule updating the way certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules.
November 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Rule to Amend Treatment of HVCRE ExposuresUS Agencies (FDIC, FED, and OCC) finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.
November 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Finalize Changes to Rule on Supplementary Leverage RatioUS Agencies (FDIC, FED, and OCC) finalized changes to the capital requirement for banking organizations predominantly engaged in custodial activities, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.
November 19, 2019
WebPage
Regulatory News
|
