Regulatory Alerts2016-08-03
Urgent Decree of the Minister of Economy and Finance, President of the CICR, of 3 August 2016, No. 343
The Italian Minister of Economy and Finance, acting as President of the Interministerial Committee for Credit and Savings, issued Decree No. 343 to regulate interest production and payment allocation in banking operations under the Banking Act. The decree prohibits compound interest on accrued debtor interest, mandates annual interest calculation periods, and establishes specific rules for the exigibility and accounting of interest on credit lines and overdrafts. Financial intermediaries are required to align existing contracts with these provisions by October 1, 2016, ensuring that any derogations from the decree are strictly more favorable to the client.
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