CICR and Emergency DM Deliberation - Deliberation of 2 August 1996

Interministerial Committee
for Credit and Savings

SECRETARIAT

Rome, 2 August
Ministry of the Treasury
Via XX Settembre, 97

DELIBERATION 2 August 1996

Implementation of Article 67, paragraph 1 of Legislative Decree 385/93 (Consolidated Regulatory Supervision).

THE INTERMINISTERIAL COMMITTEE FOR
CREDIT AND SAVINGS

HAVING REGARD to Article 53, paragraph 3, letters a), b) and c) of Legislative Decree No. 385 of 1 September 1993 (Consolidated Act of Laws on Banking and Credit Matters), which provides for the power of the Bank of Italy to convene bank representatives and order the convening of collegial bodies, or to proceed directly to the convening of the same for the examination of the corporate situation or the assumption of specific decisions;

HAVING REGARD to Article 53, paragraph 3, letter d) of the aforementioned decree, which provides for the power of the Bank of Italy to adopt specific measures against individual banks concerning capital adequacy, risk containment in its various configurations, shareholdings held, administrative and accounting organization, and internal controls;

HAVING REGARD to Article 61, paragraph 4 of the aforementioned decree, which recognizes to the parent company, in the exercise of direction and coordination activities, the power to issue provisions to individual components for the execution of instructions issued by the Bank of Italy in the interest of group stability;

Interministerial Committee
for Credit and Savings

SECRETARIAT

Rome, 2 August
Ministry of the Treasury
Via XX Settembre, 97

HAVING REGARD to Article 67, paragraph 1 of the aforementioned Legislative Decree 385/1993, which - in order to achieve consolidated supervision - attributes to the Bank of Italy, in conformity with the deliberations of the CICR, the faculty to issue to the parent company - with measures of a general or specific nature - provisions concerning the banking group considered as a whole or its components, concerning capital adequacy, risk containment in its various configurations, shareholdings held, administrative and accounting organization, and internal controls;

CONSIDERING the need to define the measures that the Bank of Italy may assume in the exercise of Regulatory Supervision against the parent company of banking groups;

DEEMING it appropriate to align the framework of measures that the Bank of Italy may assume against banks and the banking group, in accordance with the principle of neutrality of supervisory controls with respect to the organizational structure chosen by the banking intermediary;

ON PROPOSAL formulated by the Bank of Italy;

D E L I B E R E S

The Bank of Italy, where the situation requires it, assumes specific measures against the parent companies of banking groups concerning the group considered as a whole or its components, for reasons relating to capital adequacy, risk containment in its various configurations, shareholdings held, administrative and accounting organization, and internal controls.

The Bank of Italy may proceed to the convening of the directors, auditors, and managers of the parent company to examine the situation of the group and/or its components. In this context, the Bank of Italy may request that the parent company adopt corrective measures, or activate, in the exercise of its powers of direction and coordination, so that the necessary measures are assumed by the other components of the group.

Where the situation requires it, the Bank of Italy may order the convening of the collegial bodies of the parent company, setting the agenda and proposing the assumption of specific decisions concerning both the group considered as a whole and individual components. In this context, the Bank of Italy may arrange for its indications to be submitted by the parent company to the decisions of the competent bodies of the group companies involved.

In the event that the competent bodies have not complied with the above provisions, the Bank of Italy may proceed directly to the convening of the collegial bodies of the parent company.

Interministerial Committee
for Credit and Savings

SECRETARIAT

Rome, 4 August
Ministry of the Treasury
Via XX Settembre, 97

The Bank of Italy issues implementing instructions for this deliberation.

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

Rome, 2 August 1996

THE PRESIDENT
C.A. Ciampi
[Signature]