Credit Registry. Instructions for Credit Intermediaries

This document conforms to the original contained in the archives of the Bank of Italy Digitally signed by Headquarters Via Nazionale, 91 - P.O. Box 2484 - 00100 Rome - Share capital Euro 156,000.00 Tel. 06/47921 - telex 630045 BANKIT - VAT ID 00950501007 - www.bancaditalia.it

BANCA D’ITALIA
Credit Registry
Instructions for Credit Intermediaries
Circular No. 139 of 11 February 1991

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21st Update of February 2025: full reprint.

CREDIT REGISTRY. INSTRUCTIONS FOR PARTICIPATING INTERMEDIARIES ______ ___ TABLE OF CONTENTS Circular No. 139 of 11 February 1991 – 21st Update of February 2025 page 2
CHAPTER I............................................................................................................................... 6
GENERAL CHARACTERISTICS OF THE CREDIT REGISTRY .................................... 6
SECTION 1 - OBJECTIVES AND REGULATORY FRAMEWORK OF THE CENTRALIZED RISK SERVICE.................7
1. Legal sources...............................................................................................................................7
2. Objectives of the Credit Registry ...................................................................................................10
3. Confidential nature of data................................................................................................................11
4. Access to data and information obligations of intermediaries ........................................................12
5. Recipients of the regulatory framework and exemption criteria .............................................................................14
SECTION 2 ............................................................................................................................................17
ORGANIZATION AND OPERATION OF THE CENTRALIZED RISK SERVICE..........17
1. Responsibilities and general compliance of participating intermediaries........................................17
2. Compliance for starting participation in the service............................................................18
3. Outsourcing and external data processing centers..........................................................................19
4. Collection of information ..........................................................................................................19
5. Services for participants ...............................................................................................................22
6. Mandated agents...........................................................................................................................28
7. Verification and correction obligations for data......................................................................................28
8. Inspections and sanctions ..................................................................................................30
9. Transmission of information...................................................................................................30
10. Information protection methods for exchanged data .................................................................31
11. Documentation retention periods .................................................................................31
12. Distribution of the regulatory framework governing the service...............................................................32
13. Questions regarding reporting............................................................................................................32
CHAPTER II ........................................................................................................................... 33
STRUCTURE AND COMPILATION RULES FOR THE MONTHLY REPORT AND
INTRA-MONTHLY REPORTS............................................................................. 33
SECTION 1 ............................................................................................................................................34
GENERAL PRINCIPLES OF THE MONTHLY REPORT...................................................................34
1. Nature of censused risks ................................................................................................................34
2. Reporting intermediaries..................................................................................................................34
3. Heading of risk positions ...........................................................................................35
4. Data reporting model .....................................................................................................36
5. Censusing thresholds .....................................................................................................................37
6. Multiple credit facilities ...................................................................................................................................38
7. Mixed credit facilities...............................................................................................................................38
8. Cessation of reporting ......................................................................................................39
SECTION 2 ............................................................................................................................................41
CENSUS CATEGORIES OF THE MONTHLY REPORT...................................................41
1. Cash credits............................................................................................................................41
2. Signature credits..............................................................................................................................45
3. Received guarantees ..........................................................................................................................46
4. Financial derivatives .........................................................................................................................48
5. Information section ......................................................................................................................49
SECTION 3 ............................................................................................................................................53
VARIABLES FOR CLASSIFICATION OF THE MONTHLY REPORT..............................................53
1. Definition.........................................................................................................................................53
2. Location ......................................................................................................................................53
3. Original duration ...........................................................................................................................53
4. Remaining duration ...............................................................................................................................54
5. Currency............................................................................................................................................54
6. Import-export................................................................................................................................55
7. Asset type...................................................................................................................................55
8. Linked census...........................................................................................................................56
9. Relationship status..........................................................................................................................57
10. Guarantee type ..............................................................................................................................59
11. Correlated phenomenon ....................................................................................................................60
12. Credit quality.......................................................................................................................60
SECTION 4 ............................................................................................................................................61
DATA CLASSES OF THE MONTHLY REPORT ...........................................................................61
1. Approved and operationally approved...................................................................................................61
2. Utilized.......................................................................................................................................62
3. Average balance ..................................................................................................................................63
4. Guarantee value and guaranteed amount..............................................................................................63
5. Intrinsic value and other amounts....................................................................................................64
6. Prohibition of set-off.............................................................................................................65
SECTION 5 ............................................................................................................................................66
CHARACTERISTICS OF INTRA-MONTHLY REPORTS............................................................66
1. General principles............................................................................................................................66
2. Intra-monthly reporting of changes in customer “status” ............................................66
3. Intra-monthly reporting of payment regularizations and “re-entry” of persistent overdrafts
(art. 8-bis, Legislative Decree 70/2011)...................................................................................................68
SECTION 6 ............................................................................................................................................70
RULES REGARDING SPECIFIC TYPES OF OPERATIONS...........................................70
1. Factoring operations ...........................................................................................................70
2. Pro soluto factoring operations that provide the assignee debtor with
payment term deferral...........................................................................................................................71
3. S.b.f., invoice advances, bills of exchange and other commercial documents....................................................72
4. Portfolio discounting.....................................................................................................................72
5. Financing against assignment of credits from customers other than intermediaries........................73
6. Credit assignment operations from intermediaries.........................................................................74
7. Portfolio assignment operations of assignee debtors arising from factoring operations
(resales) ........................................................................................................................................74
8. Leasing operations ....................................................................................................................76
9. Loans against assignment of salary or pension............................................................................77
10. Mortgage prefinancing .........................................................................................................80
11. Mortgages and other installment repayment operations ................................................................................80
12. Assumption of debt operations ..................................................................................................80
13. Credit cards............................................................................................................................81
14. Repurchase agreements and active repos............................................................................................81
15. Pool operations.......................................................................................................................82
16. Letters of patronage....................................................................................................................82
17. Guarantees issued on behalf of other intermediaries .......................................................................83
18. Documentary credit opening for imports ....................................................................83
19. Uncollectibility of credits ordered by Authorities based on legal provisions...............................84

Circular No. 139 of 11 February 1991 – 21st Update of February 2025 page 4
20. Petition for preventive composition of crisis (so-called “blank concordat” and “continuity concordat”) 86
21. Crisis composition procedure for over-indebtedness for debtors not subject to bankruptcy................................................................................................................87
22. Cancellation of payment delay reports..............................................................88
23. Reverse Mortgage Loan (PIV)..............................................................................................88
24. Pension-backed financial advance (APE). .................................................................89
25. Credit assignment operations refused by the Public Administration - contracting authority, as assignee debtor
................................................................................................................................................90
26. Formalized agreements with customers. .........................................................................................90
CHAPTER III.......................................................................................................................... 92
PROCEDURES FOR INFORMATION EXCHANGE.................................................. 92
SECTION 1 ............................................................................................................................................93
GENERAL CHARACTERISTICS .........................................................................................................93
1. Premise .......................................................................................................................................93
2. Methods of exchanging reports ............................................................................................93
3. Data controls ...........................................................................................................................94
SECTION 2 ............................................................................................................................................95
MANAGEMENT OF AMOUNTS...............................................................................................................95
1. Reporting of risk positions .........................................................................................95
2. Corrections to amounts...................................................................................................................95
3. Request for first information ...................................................................................................96
4. Periodic request for information ..............................................................................................96
SECTION 3 ............................................................................................................................................98
MANAGEMENT OF QUALITATIVE INFORMATION (INTRA-MONTHLY)...........................................98
1. Reporting of changes in customer “status” ..............................................................98
2. Reporting of payment regularizations and “re-entry” of persistent overdrafts
..........................................................................................................................................................99
APPENDICES............................................................................................................................. 100
APPENDIX A – LEGAL SOURCES............................................................................. 101
APPENDIX B – INFORMATION COLLECTION DATA MODEL .... 106
MONTHLY REPORT – PARTIAL RISK POSITION.........................................107
INTRA-MONTHLY REPORT OF PAYMENT REGULARIZATIONS AND
“RE-ENTRY” OF PERSISTENT OVERDRAFTS .............................................................113
APPENDIX C – PRODUCTS FOR INTERMEDIARIES............................................. 114
CONTENT OF FIRST INFORMATION..............................................................................114
CONTENT OF CUSTOMIZED RETURN FLOW .....................................................119
APPENDIX D – DIFFUSION OF DATA MODEL INFORMATION ... 122
MONTHLY REPORT - GLOBAL RISK POSITION ..........................................123
INFORMATION ON CHANGES IN CUSTOMER “STATUS”...........................128

Circular No. 139 of 11 February 1991 – 21st Update of February 2025 page 5 INFORMATION ON PAYMENT REGULARIZATIONS AND “RE-ENTRY” OF
PERSISTENT OVERDRAFTS ..............................................................................................129
APPENDIX E – MAPPING TABLE WITH SUPERVISORY REPORTS
OF BANKS........................................................................................... 130
APPENDIX F – MAPPING TABLE WITH SUPERVISORY REPORTS
OF FINANCIAL INTERMEDIARIES.................................................... 137
APPENDIX G – SAMPLE LETTER OF CERTIFICATION
BY PARTICIPATING INTERMEDIARY.................................................................... 143
APPENDIX H – LIST OF MESSAGES.................................................................... 145
APPENDIX I – LIST OF COMMUNICATIONS.................................................. 148
GLOSSARY........................................................................................................................... 153

Circular No. 139 of 11 February 1991 – 21st Update of February 2025
CHAPTER I
GENERAL CHARACTERISTICS OF THE CREDIT REGISTRY

CREDIT REGISTRY. INSTRUCTIONS FOR PARTICIPATING INTERMEDIARIES CHAPTER I Circular No. 139 of 11 February 1991 – 21st Update of February 2025 page 7
SECTION 1 - OBJECTIVES AND REGULATORY FRAMEWORK
OF THE CENTRALIZED RISK SERVICE

1. Legal sources
   The credit risk centralization service managed by the Bank of Italy (denominated “Credit Registry”) is governed by the urgent decree of the Minister of Economy and Finance - President of the Interministerial Committee for Credit and Savings (CICR) of 11 July 2012 No. 663 and by these instructions issued in conformity with the same1 . These instructions have been prepared taking into account best practices and standards established at the international level2 . They also take into account the need to reduce, where possible, the burden of reporting obligations. Relevant to the regulatory framework of the matter are:

• Legislative Decree 1 September 1993, No. 385 (Consolidated Act of laws on
  banking and credit matters, hereinafter referred to as “T.U.B.”), in particular:
  − art. 53, paragraph 1, letter b), which assigns to the Bank of Italy the power to issue general provisions aimed at containing risk in its various configurations; − art. 51, which provides that banks send to the Bank of Italy, in the manner and within the terms established by it, periodic reports as well as any other data and documents requested; − art. 67, paragraph 1, letter b), which assigns to the Bank of Italy the faculty to issue to the parent company, with general or specific provisions, directives concerning the banking group as a whole or its components, aimed at containing risk in its various configurations; − art. 108, which assigns to the Bank of Italy the task of issuing to financial intermediaries directives aimed at containing risk in its various configurations and provides that financial intermediaries send to the Bank 1 With Legislative Decree 12 May 2015 No. 72, implementing European Directive 2013/36/EU (CRD4), the competence of the CICR in exercising the regulatory power of the Bank of Italy in matter of supervision has ceased. However, pursuant to Law 30 April 1999 No. 130, the CICR competence on the specific aspect of participation in the Credit Registry by credit securitization companies is maintained: therefore, the urgent decree of the Minister of Economy and Finance - President of the CICR of 11 July 2012 No. 663 remains in force until the next reorganization of the relevant regulatory framework (cf. art. 161, para. 5 T.U.B.). 2 Cf. The World Bank, General Principles for Credit Reporting, September 2011.

CREDIT REGISTRY. INSTRUCTIONS FOR PARTICIPATING INTERMEDIARIES CHAPTER I Circular No. 139 of 11 February 1991 – 21st Update of February 2025 page 8 of Italy, in the manner and within the terms established by it, periodic reports as well as any other data and documents requested; − arts. 54, 68 and 108, paragraph 5, which assign to the Bank of Italy the power to carry out inspections respectively at banks, subjects included in the scope of consolidated supervision (as per art. 65) and financial intermediaries; − art. 47, paragraphs 1 and 2, which provides the possibility for all banks to provide financing or provide services provided for by current incentive laws, provided they fall within the activities that banks can carry out on an ordinary basis and are regulated by contract with the competent public administration, containing criteria and methods suitable to overcome the conflict of interest between the management of funds and the activity carried out on their own behalf by banks; − art. 110, paragraph 1, which provides for the application to financial intermediaries, within the limits of compatibility, of the provisions contained inter alia in art. 47; − art. 114, which, regarding the possibility of granting credit to companies, provides for the participation of Italian insurance companies and Sace in the Credit Registry

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