Regulatory Alerts2019-07-30
Communication of 29 July 2019 - SIMs and Groups of SIMs: Amendments to the Rules on the Application of the Default Definition
The Bank of Italy issued this Communication to amend the regulatory framework for Securities Intermediation Companies (SIMs) regarding the application of the default definition under the CRR. The amendments establish materiality thresholds for past-due exposures—set at 100 euros for retail and 500 euros for non-retail, plus a 1% relative component—and formally incorporate the European Banking Authority’s Guidelines on default identification, calculation criteria, and exit rules. These changes align SIMs with updated European credit risk standards and become applicable from 31 December 2020.
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