THE FUND AND PARTICIPATING BANKS
 Fund's Interventions
Subject to the authorization of the
Bank of Italy, the Fund shall intervene:
- in cases of compulsory administrative liquidation
of member banks authorized to do business in Italy and,
with regard to Italian branches of EU banks, in
cases the home country deposit protection
system has intervened;
- in cases of appointment of a special administrator
of member banks authorized to do business in Italy.
The Fund shall intervene on behalf
of its members and in their interest.
The resources required for interventions
constitute advances to the Fund as mandatary and must
be paid to the Fund according to the procedures and
the schedule determined by the Executive Committee.
The Fund is based on an ex-post contribution
system. The resources for interventions are therefore
paid off by member banks only following a request
by the Fund. The amount of such payments shall be
determined according to the intervention.
Analysis of the credit risk
The Fund evaluates the credit risk
of member banks through a system of four balance-sheet
indicators:
Risk, Solvency ,Maturity Transformation,
and Profitability. The details related
to each indicator can be found in the Statutes.
Member banks whose balance-sheet
indicators are in the "violation" class are
subject to the following sanctions:
- increase in the quotas paid for contribution and
operating expenses;
- other pecuniary and administrative sanctions,
from suspension of voting rights up to exclusion
form the Fund (subject to the authorization of the
Bank of Italy).
The Fund periodically informs member
banks on their position as regards to the indicators
and their overall situation.
Given their institutional function,
members of Statutory organs and other officials working
for the Fund are subject to professional secrecy.
Technological Services and Research
The Fund both provides member banks with
technological services and also conducts
research projects on credit risk management.
|
