Italy: lending & credit regulation

Regulated

Italy lending & consumer credit: TUB framework, Bank of Italy supervision, usury caps

Lead regulator:: Bank of Italy
Key law:: Legislative Decree 385/1993 (Banking Act)
Last updated:: 2026-07-12

Lending and consumer credit activities in Italy are strictly regulated under the Banking Act (TUB), with the Bank of Italy serving as the primary supervisor for prudential conduct, transparency, and risk management. Licensed banks and authorized financial intermediaries must adhere to rigorous creditworthiness assessments, internal control standards, and reporting obligations.

Consumer credit is governed by specific legislative decrees implementing EU directives, mandating strict transparency rules for APR calculation and pre-contractual information. The regulatory framework also enforces usury laws through the publication of average effective global rates (TEGM) to cap interest rates and prevent predatory lending practices.

Recent supervisory focus includes the management of non-performing loans, the prevention of over-indebtedness in salary-backed financing, and the alignment of national rules with EU capital requirements. The regime emphasizes robust risk centralization and operational control for all credit-granting entities.

Who regulates

Bank of Italy
Primary supervisor for banking intermediaries, prudential supervision, usury rate monitoring, and consumer credit transparency.
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Minister of Economy and Finance (President of CICR)
Issues urgent decrees to implement EU directives and regulate specific consumer credit aspects, such as mortgage rules and interest allocation.
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Core laws & rules

Legislative Decree 385/1993 (Banking Act) (1993)
The foundational law regulating banking activities, establishing the licensing regime for banks and financial intermediaries, and defining their organizational and internal control requirements.
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Legislative Decree 141/2010 (2010)
Implements EU consumer credit directives, regulating transparency, APR calculation, and pre-contractual information for consumer credit contracts.
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Legislative Decree 218/2010 (2010)
Regulates consumer residential mortgage credit contracts, implementing EU Directive 2014/17/EU with detailed rules for calculation and transparency.
^[8]
Law No. 108/1996 (Usury Law) (1996)
Establishes the legal framework for preventing usury, including the publication of average effective global rates (TEGM) by the Ministry of Economy and Finance.
^[2][25][19]

Licensing & registration

Banking Authorization
Required for entities conducting banking activities, including granting credit. Subject to strict prudential supervision, internal control requirements, and capital adequacy rules.
^[1][14][15]
Financial Intermediary Registration
Required for non-bank financial intermediaries under Article 106 of the TUB. Entities must participate in the risk centralization service and meet minimum organizational requirements.
^[5]

Restrictions & warnings

Usury laws prohibit interest rates exceeding the average effective global rate (TEGM) published quarterly by the Ministry of Economy and Finance.
^[2][25]
Banks must conduct rigorous creditworthiness assessments to prevent over-indebtedness, particularly for salary or pension assignment-backed loans.
^[4]
Compound interest is prohibited on accrued debt in certain banking operations, and specific rules govern its application in current accounts and installment loans.
^[9][17]
Mortgage credit operations are subject to a maximum financing limit of 80% of the value of the mortgaged assets or construction costs.
^[23]

Direction of travel

Regulatory focus remains on the management of non-performing loans, with new supervisory provisions implemented in 2025 to enhance risk assessment and recovery processes.
^[3]
Continued alignment with EU directives and EBA guidelines, particularly regarding default definitions, capital requirements, and consumer protection standards.
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Sources

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This guide is compiled automatically from 26 primary-source documents published by Italy's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.