From January 1st, the deadline for banks to comply with the EBA Regulation on capital requirements begins. The account holder who goes in the red risks being reported if his exposure is a “non-performing loan”.
by Lucilla Incorvati
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From January 1st, the deadline for banks to comply with the EBA Regulation on capital requirements begins. The account holder who goes in the red risks being reported if his exposure is a “non-performing loan”.
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5 ‘of reading
But is it really true that an overrun of 100 euros will be enough to be reported in default and become a bad payer even if it has never happened before? The overrun must exceed the “threshold of relevance”, i.e. simultaneously exceed both an absolute threshold (100 or 500 euros, if you are private in the first case, if you are a company in the second) and a relative one (1% of the total exposure) ; moreover, the overrun must last for more than 90 consecutive days (in some cases as for the public administrations, 180 days).
More stringent rules since January
This was answered by the Bank of Italy, which intervened with a clarification on the issue relating to the entry into force of the Eba Regulation (1 January 2021) relating to the rules on capital requirements that could change from 1 January (in those institutions where the changes have not yet been ratified ) relations between customers and banks. The new rules are the result of a European negotiating compromise and for Italy they introduce different criteria from those currently used for some more stringent aspects. The customer risks being blacklisted due to a new default classification.
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Starting from 1 January next, intermediaries must classify in default the customer who fails to fulfill his credit obligations claimed by the banking or financial group towards him for three months if the amount of the default is greater than 100 euros and 1% of the total credit obligations claimed by the bank. Basically, from January automatic debits may no longer be allowed on current accounts if not covered by sufficient liquidity. For many Italians, especially struggling with the economic consequences suffered as a result of the Covid-19 epidemic, the risk of a stop to payments for utilities, salaries, social security contributions and loan installments could be envisaged.
When trespassing is allowed
These new rules do not prohibit the possibility of overruns: as already now, banks, in compliance with their policies, can allow customers to override the amount available on the account or, in the case of a credit line, beyond the credit limit. The possibility of overstepping is not a customer’s right, but an option granted by the bank, which can also apply commissions (the so-called CIV, quick investigation commission). As of January 1, as already today, banks will be able to continue to allow customers to use the account, including for the payment of utilities or salaries, which lead to overrun.
However, this is a discretionary choice of the bank, which can either allow or refuse the overrun. It is therefore important to be familiar with the contract stipulated with your bank and to communicate with it. For this reason it is important that intermediaries provide information and assistance to their customers, to raise awareness of the implications of the new discipline, to help them understand the change taking place and adopt behaviors consistent with the new discipline. In recent days, the Bank of Italy asked banks and financial intermediaries to take action in this direction and to clarify to customers.
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