This content is from: Local Insights

Italy

A draft Legislative Decree implementing EU Directive 19/94 was submitted in September to Parliament by the Council of Ministers.

The Decree, once approved, will introduce amendments to Article 96 of the Italian Banking Act.

Banks will have to join a guarantee system for banking deposits. While Italian branches of European banks may incorporate the protection offered in their home country by adhering to an Italian guarantee system, non-EU authorized banks will have to join an Italian guarantee system unless they are part of an equivalent foreign system in their home country.

The minimum guaranteed amount for each depositor will be L200 million (US$130,000) and a payment equal to the value of Ecu20,000 (US$24,000) must be made within three months of the date of approval of the liquidation of the bank.

The Italian legislature has expressly excluded from the scheme certain funds such as bearer deposits, bonds and drafts together with transactions entered into by qualified professional investors or officers of the bank involved in its management, bank deposits, funds deriving from money-laundering transactions and patrimonial funds already excluded under EU Directive 19/94.

The Bank of Italy is vested with the authority to supervise the guarantee systems in general and in particular those which non-EU banks will join in the event of their opening of branches in Italy.

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