Lending by securitization vehicles: the Bank of Italy updates the Supervisory Instructions for Banks and Financial Companies

On 8 March 2016 the Bank of Italy updated the Supervisory Instructions for Banks (update no. 15) and the Supervisory Instructions for Financial Companies (update no. 1), in order to reflect the amendments to Law No. 130/1999 that were introduced by Legislative Decree No. 91/2014 (the so called “Competitiveness Decree”, converted into Law No. 116/2014) in respect of the granting of loans by securitization vehicles.

Pursuant to Article 1-ter of Law 130/1999, securitization vehicles may grant loans to entities other than individuals and micro-enterprises provided that the following conditions are met:

1. the borrowers are identified by a bank or by a financial company (intermediario finanziario);
2. the notes issued to fund the loans are addressed only to qualified investors;
3. the bank or the financial company identifying the borrowers retains a material economic interest in the transaction, in accordance with the implementing provisions issued by the Bank of Italy.