Deliberations of the CICR and Urgent DM - Deliberation of 29 March 1994

Interministerial Committee for Credit and Savings

SECRETARIAT

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

DELIBERATION 29 MARCH 1994

Regulation of the Risk Centralization Service. Coordination with the provisions of the consolidated text of laws on banking and credit matters.

THE INTERMINISTERIAL COMMITTEE FOR CREDIT AND SAVINGS

Having seen Legislative Decree 1 September 1993, No. 385, containing the consolidated text of laws on banking and credit matters;

Having seen its own deliberations of 16 May 1962, 27 November 1970, and 29 December 1977, as well as the Decree of the Minister of the Treasury of 2 April 1991, establishing and regulating the risk centralization service pursuant to Article 32, letter h), of Royal Decree-Law 12 March 1936, No. 375, and subsequent amendments and additions, which was repealed by the aforementioned consolidated text;

Having seen Article 53, paragraph 1, letter b), of the aforementioned consolidated text, under which the Bank of Italy issues, in accordance with the deliberations of this Committee, general provisions addressed to banks aimed at containing risk in its various configurations;

Deeming that the realization of the risk centralization service is also consistent with this objective, as it constitutes a support tool for banks to avoid risks arising from the accumulation of credit lines;

Having seen Articles 65 and 67, paragraph 1, letter b), as well as Article 107, paragraph 2, of the consolidated text, which confer analogous powers vis-à-vis financial companies belonging to banking groups, those at least 20 percent owned by companies belonging to a banking group or by a single bank, and vis-à-vis financial intermediaries registered in the special list referred to in paragraph 1 of the same Article 107;

Considering the need to gradually extend, with appropriate gradualness, the scope of detection of the service to the risks assumed by these latter categories of intermediaries in order to increase the informational effectiveness of the same;

Considering the necessity to better clarify the scope of application of the confidentiality obligation regarding data registered by the Central Service, with particular reference to the possibility of informing third parties of the information registered in their name;

Noting the opportunity to extend the principle of chargeability to all requests for initial information, also considering the growing use of this specific service by the banking system;

DELIBERATES

1. The service of centralization of credit risks is entrusted to the Bank of Italy. Banks registered in the register referred to in Article 13, financial companies referred to in Article 65, paragraph 1, letters a) and b), and financial intermediaries registered in the special list referred to in Article 107 of the consolidated text of laws on banking and credit matters are required, upon request of the Bank of Italy and according to the methods established by it, to periodically communicate their exposure towards their credit clients and the names associated with them. The Bank of Italy identifies, among the financial companies referred to in Article 65 mentioned above and the subjects registered in the special list referred to in Article 107, those that, also due to the activity carried out, are required to make reports to the Risk Centralization Service.

2. The Bank of Italy periodically provides to each subject required to make the communications referred to in the previous point 1, a summary position of the risks collectively registered in the name of each credit client reported by them and of the associated names.

3. The companies and entities referred to in point 1 may request the Bank of Italy to disclose to them the global risk position of names registered other than those reported by them. Such requests may be made for purposes connected to the activity of assuming risk in its various configurations; in exchange for these, a consideration must be paid to the Bank of Italy, according to the methods established by it, aimed at pursuing the economic efficiency of the service and the correctness of its use.

4. The personal data registered by the Risk Centralization Service have a confidential character. The Bank of Italy and the subjects referred to in point 1 may communicate to third parties the information registered in their name, according to the procedure indicated by the Risk Centralization Service.

5. Within the framework of the collaboration relationships referred to in Article 7, paragraph 7, of the consolidated text, the Bank of Italy may bring to the knowledge of the competent authorities of other Member States of the European Union the information concerning the global risk positions of the names registered by the Risk Centralization Service, allowing them to be used by banks and financial intermediaries of those States.

6. For non-compliance with the provisions of this deliberation and those that will be issued by the Bank of Italy for the implementation of the service, the provisions of Articles 144 and 145 of the consolidated text shall apply.

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

Rome, 29 March 1994

THE PRESIDENT P. Barucci