CICR and Emergency DM Deliberation - Deliberation of 22 April 1995

Rome, dated Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

SECRETARIAT

DELIBERATION 22 April 1995

Article 53, paragraph 3, of Legislative Decree 1 September 1993, No. 385 (Consolidated Text on Banking and Credit Laws). Redefinition of the regulations concerning banks' real estate investments.

THE INTERMINISTERIAL COMMITTEE FOR CREDIT AND SAVINGS

Having regard to Article 53, paragraph 1, letter b), of Legislative Decree 1 September 1993, No. 385, which provides that the Bank of Italy, in conformity with the deliberations of the CICR, issues general provisions aimed at containing risk in its various configurations;

Having regard to Article 67, paragraph 1, letter b), of Legislative Decree 1 September 1993, No. 385, which provides that the Bank of Italy, in conformity with the deliberations of the CICR, in order to achieve consolidated supervision, has the power to issue to the parent company, through general or specific measures, provisions concerning the group as a whole or its components, aimed at containing risk in its various configurations;

Having regard to Decree 242630 issued by the Minister of the Treasury on 22 June 1993, which, in identifying criteria aimed at containing risks related to maturity transformation, establishes that for this purpose investments in real estate and equity holdings must be contained within the amount of equity funds;

Having regard to Decree No. 242632 issued by the Minister of the Treasury on 22 June 1993, which, within the framework of

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Rome, dated Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

SECRETARIAT

defining the criteria for identifying permissible equity holdings, provides, among other things, that the total amount of investments in equity holdings and real estate may in any case not exceed the limit of supervisory capital as defined in Community matters regarding own funds;

Recognizing the need to align the regulations on banks' real estate investments with the new regulatory framework;

On the proposal formulated by the Bank of Italy;

D E L I B E R A

1. Banks' real estate investments.

Banks may make investments in real estate in compliance with the typical nature of the banking corporate object. The Bank of Italy regulates the operational possibilities of banks and banking groups in this matter, keeping in mind that the total amount of investments in real estate and equity holdings may in any case not exceed supervisory capital.

The Bank of Italy, if the technical situation so requires, may set stricter limits on the assumption or maintenance of real estate investments.

In the case of real estate investments made to protect credit claims, exceeding the supervisory capital limit is permitted, in compliance with the prudential rules established by the Bank of Italy.

2. Revoked provisions

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Rome, dated Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

SECRETARIAT

With this deliberation, the following provisions are intended to be revoked:

• CICR deliberation of 4 June 1952 regarding real estate investments of pension funds for employed bank staff;
• CICR deliberation of 20 March 1962 which raised the rate of pension funds to be invested in real estate to 50% of such funds;
• CICR deliberation of 9 December 1964 concerning real estate investments of liquidation funds for staff of credit institutions;
• any other provision that proves incompatible with this deliberation.

3. Implementing instructions

The Bank of Italy issues implementing instructions on the matter regulated by this deliberation.

On a transitional basis, pending a definitive arrangement of the legislation on pension funds, the Bank of Italy may continue to apply the special regulations regarding real estate investments of pension funds for staff.

This deliberation will be published in the Official Gazette of the Italian Republic.

Rome, 22 April 1995

THE PRESIDENT Dini