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Bank of Italy: EU standard on default does not prohibit overruns

2020-12-28T17:23:22.862Z


"The new definition of default may have repercussions on credit relations between intermediaries and their customers, whose management, as in all situations of default, may involve the adoption of initiatives to ensure the regularization of ... (ANSA)


(ANSA) - ROME, DECEMBER 28 - "The new definition of default may have repercussions on credit relations between intermediaries and their customers, whose management, as in all situations of default, may involve the adoption of initiatives to ensure the regularization of the credit relationship . The new definition of default does not introduce a prohibition on allowing overruns: as already now, banks, in compliance with their own policies, can allow customers to use the account that entails an overrun beyond the availability present in the account or, in the case of a credit line, beyond the limit. of credit ". This is what Bankitalia specifies in a note regarding the European Regulation on prudential requirements for credit institutions and investment firms.


   (HANDLE).


Source: ansa

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