In consultation the provisions of Bank of the Italy regarding the the regulatory proposals on capital reserves and macroprudential instruments
On April 28th, 2021, the Bank of Italy issued the regulatory proposals on capital reserves and macroprudential instruments (these tools facilitate the prevention of substantial disruptions in credit and other vital financial services necessary for stable economic growth) based on the characteristics of customers or loans (also referred to as borrower-based measures) for public consultation.
In particular, the following have been subjected to public consultation:
- the amendments to Part One, Title II, Chapter 1, of the Bank of Italy Circular communication no. 285/2013, concerning the provisions on the capital reserve requirements for banks;
- the introduction of Chapter 12, Part Three, in the Bank of Italy Circular no. 288/2015 for the introduction of macroprudential borrower-based instruments into national legislation.
The amendment to the first point introduces the capital reserve for systemic risk buffer (SyRB) for banks and authorised banking groups in Italy and it helps to align the rules with regard to the capital reserve.
The amendment to the second point is aimed at introducing same borower-based measures (not regulated by European regulation).
The need to extend the macro-prudential tools has been recommended by the International Monetary Fund (IMF).
The measures borrower based will be introduced to the Payment Institutions, the Electronic Money Institutions and to financial intermediaries.
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Regulatory proposals on capital reserves and macroprudential instruments