Bankitalia closes consultation on regulations governing NPLs

The directive regulating the activities of managers and buyers of non-performing loans, better known as non-performing loans (NPLs), finally sees the finish line in Italy as well. Last August 13, in fact, the Legislative Decree on the (belated) transposition into Italian law of the Secondary Market Directive (Smd) adopted by the European Union back in November 2021 was published in the Official Gazette.

[...] The new legislation aims to remove some regulatory barriers that have so far prevented the development of a pan-European secondary market for bank non-performing loans that is at the same time efficient, competitive and liquid. “From a regulatory perspective,” explains Fabio Coco, partner at ADVANT Nctm, ‘the most noteworthy reform introduced by the decree is the substantial liberalization, under certain conditions, of the purchase of bank non-performing loans.’[...]

[...]“The transposition of the Smd will go far beyond the supervision of non-performing loan servicers,” Coco confirms, indicating that “there will also be impacts on transparency, out-of-court dispute resolution systems, and the rules governing the central risk pool.”[...]

Full article in today's edition of Il Sole 24 Ore.