Following an earlier public consultation by the Ministry of Economy and Finance, the Italian Government has now approved, in a preliminary review, two legislative decrees that will transpose the Bank Recovery and Resolution Directive (BRRD).

The first legislative decree includes the provisions governing resolution plans, resolution procedures, (including bail-in and the management of cross-border banking groups in crisis) and powers of the resolution authority (i.e. the Bank of Italy). The second legislative decree amends the Italian Banking Act (Legislative Decree 385/1993, Testo Unico Bancario), inter alia by inserting provisions on early intervention measures and coordinating the existing regime with the BRRD, particularly as to liquidation procedures applicable to banks (liquidazione coatta amministrativa). The legislative decree also contains new provisions on credit hierarchy.

Both legislative decrees are expected to be approved in their final version after an opinion by the competent Parliament commissions.

View: Consultazione pubblica concernente il recepimento della direttiva 2014/59/UE, in Italian (text for the public consultation, as the wording approved by the Government is not available to the public, yet)