The Bank of Italy has published the 9th update, dated 9 June 2015, to the Supervisory Provisions for banks set out in Circular no. 285 of 17 December 2013, which has introduced a new Chapter 4 “Banks in cooperative form” in Part Three.
The Chapter implements the reform of the popular banks (banche popolari) introduced by the amendments to Chapter V, Section I of the Consolidated Banking Act (TUB) made by Decree-Law no. 3 of 24 January 2015, converted into law by Law no. 33 of 24 March 2015.
With this regulatory measure, the reform of the popular banks is completed in all its aspects and it is therefore possible to begin the corporate transactions needed to implement it (first and foremost conversions into joint-stock companies, s.p.a.) in the manner provided for by law.
From the entry into force of the secondary provisions begins the 18-month period, laid down by law, within which popular banks with assets exceeding EUR 8 billion must ensure compliance with the reform.
The provisions define:
– the criteria for determining the value of assets for the purposes of complying with the maximum threshold of EUR 8 billion established by Article 29 of the Consolidated Banking Act (TUB);
– the conditions limiting the redemption of the shares of an outgoing member, including in the event of withdrawal following the conversion of the popular bank into a joint-stock company, required under European rules for the shares of cooperative banks to count as highest-quality capital (CET1). These conditions also apply to cooperative credit banks (banche di credito cooperativo).
The new provisions will enter into force on the same day as the legislative decree transposing Directive 2013/36/EU (CRD IV) enters into force.
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