UBI Banca Group

total of the variable component of remuneration in a bank, when this is necessary to
maintain a solid capital base. For banks which benefit from exceptional government
support, the Bank of Italy may also set limits on the total remuneration of corporate
personnel.
• Decree Law No. 201 of 6 th December 2011, (the “Save Italy” decree), converted with
Law No. 214 of 22 nd December 2011 and published in the Official Journal on 27 th
December 2011 not only reformed the pension system 20 , and a series of matters regarding
tax 21 , but it also introduced other important changes which concern the banking sector. It
included the following:
the application of a single all-inclusive commission on contracts which grant credit,
calculated proportionally in relation to the sum of the credit granted and to the duration
of the authorisation and a rate of interest payable on the sums withdrawn. The amount
of the commission may not exceed 0.5%, per quarter of the sum made available to a
customer. For overdrafts in the absence of authorisation or for amounts in excess of an
authorisation, the only charge to be borne by a customer is a processing fee and a rate of
interest payable on the amount in excess of the authorisation;
the ability of Italian banks to benefit until 30 th June 2012 from a bank guarantee on
liabilities with maturities of from three months to five years and from 1 st January 2012
to seven years for covered bonds, issued after the decree comes into force. The amount of
the guarantees granted is limited to that which is strictly necessary to restore the
medium to long term funding capacity of the beneficiary banks and may not exceed the
supervisory capital inclusive of the tier three capital for individual banks;
the reduction from €2,500 to €1,000 of the limit on the legal use of cash and bearer
instruments as a means of payment 22 and a related reduction in the interbank
commissions borne by retailers on transactions performed using electronic payment
cards;
as measures to safeguard competition in the credit sector, the introduction of a
prohibition for those occupying positions on management, supervisory and control
bodies in companies operating in the credit, insurance and financial markets on
accepting and occupying positions in competing companies.
• to complete the contents of the “Save Italy” decree, Decree Law No. 1 of 20 th January
2012 (liberalisations measure) states that when banks, credit institutions and financial
institutions make the grant of a mortgage dependent of signing a life insurance contract,
they are required to submit at least two estimates from two different insurance groups to
the customer. That same decree, converted into law with Law No. 28 of 24 th March 2012
established, amongst other things, the creation of a new “basic” bank account, the features
of which will be set by a decree of the Ministry of the Economy in consultation with the
Bank of Italy. This will also put a cap on bank commissions on withdrawals made from the
ATMs of a bank which is not that of the cardholder;
• with regard to bank commissions, Decree Law No. 29 of 24 th March 2012 restored the
provisions initially contained in the “Save Italy” decree following the approval of a
parliamentary amendment, when the measures on liberalisations, which had abolished
them completely, where passed;
• with regard to the supervision of banks and brokerage companies, the Directives
2006/48/EC and 2006/49/EC were amended on 24 th November 2010 by Directive
2010/76/EC of the European Parliament and the Council (“CRD III”), the provisions of
which apply, starting with the supervisory reporting relating to 31 st December 2011. The
new measures concern the rules for supervisory capital, remuneration policies and
incentives, credit risk, securitisations, market risk and disclosures to the public. More
specifically, CRD III completed the implementation in Europe of the recommendations given
by the Basel Committee in the document “Enhancements to the Basel II framework” of July
2009.
20 For which the following section “Human Resources” may be consulted.
21 For which the following section “Other information” may be consulted.
22 In this respect the Italian Banking Association in a circular of 11 th January 2012 and the Ministry of the Economy and Finance in
Circular No. 2 of 16 th January 2012 specified that the limit on cash cannot be applied to payments and withdrawals made in banks.
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