Communications - SIM Communications and SIM Groups - Effective Date of the Discipline on the Application of the Default Definition

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SIMs and Groups of SIMs - Effective Date of the Discipline on the Application of the Default Definition.
Modifications to the Discipline
With the Communication of July 29, 2019, which modifies the discipline contained in the Communication of March 31, 2014 (1) concerning the application to SIMs and groups of SIMs of the CRDIV/CRR rules (2), the Bank of Italy has:

• set the relevance threshold for past-due credit obligations, pursuant to Article 178 of Regulation (EU) No 575/2013 (CRR), as integrated by Commission Delegated Regulation (EU) No 171/2018 of October 19, 2017 (RD);
• transposed into national law the EBA Guidelines on the application of the definition of default pursuant to Article 178 of the CRR (Guidelines).
  The Communication indicates December 31, 2020, as the first application date of the new discipline, in line with what the 27th update of Circular No. 285 provides for less significant banks. In its Progress Report on the IRB Roadmap (3), the EBA clarified that the new discipline must be implemented by December 31, 2020, to apply from January 1, 2021, also for supervisory reporting purposes. In line with the EBA's indications, it is communicated that the application of the prudential default discipline for SIMs, contained in the Communication of July 29, 2019, is postponed to January 1, 2021. Entry into Force This regulatory modification enters into force from the date of publication in the Official Gazette.

This communication was issued following the opinion of CONSOB, pursuant to Article 6, paragraph 1, of the TUF.

1 Cf. Communication of March 31, 2014, published in the Supervisory Bulletin 3/2014 and subsequently integrated with the Communication of January 4, 2018. 2 Directive 2013/36/EU (CRDIV) and Regulation 575/2013/EU (CRR). 3 https://eba.europa.eu/eba-publishes-report-on-progress-made-on-its-roadmap-to-repair-irb-models.