Regulatory Alerts2022-01-12
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Communications - Communication of 12 January 2022
The Bank of Italy issues supervisory guidelines for banks and financial intermediaries regarding 'CQS/CQP' loans (salary/pension assignment-backed financing), emphasizing the need for rigorous creditworthiness assessments to prevent over-indebtedness despite reduced regulatory capital requirements. The document mandates robust operational, legal, and reputational risk controls, particularly concerning third-party collections, insurance management, distribution networks, and the 'originate-to-distribute' business model. Supervisory activities will be intensified through portfolio monitoring and inspections to ensure market practices comply with transparency, correctness, and regulatory frameworks.
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