The Bank of Italy has published a memorandum to the Senate’s European Union Policies Committee calling for specific criteria in the 2026 European Delegation Bill to implement EU reforms on bank crisis management, deposit protection and corporate sustainability due diligence. The recommendations address gaps in how Italy would exercise national discretion, adapt sanctions and assign regulatory and supervisory powers. For bank crisis management and deposit protection, the proposed additions would guide national implementation and explicitly grant the Bank of Italy rulemaking powers over technical matters. The EU reforms, generally applicable from May 11, 2028, are expected to modestly expand the scope of resolution and ease access to funding. Deposit guarantee schemes could, subject to conditions, finance transfers that include uninsured deposits and other liabilities. For banks with assets of no more than EUR 80 billion, scheme contributions could also count toward the minimum bail-in of 8% of total liabilities and own funds required to access the Single Resolution Fund, subject to additional eligibility conditions. A less restrictive least cost test would facilitate scheme interventions other than reimbursing protected depositors. On sustainability, the bill’s criteria are considered sufficiently detailed for implementing changes to the Corporate Sustainability Reporting Directive (CSRD), whose transposition is due by March 17, 2027. However, neither the bill nor the existing legislative delegation provides specific criteria for implementing the Corporate Sustainability Due Diligence Directive (CSDDD), which Italy has not yet transposed and whose deadline has been deferred to July 26, 2028. The memorandum recommends adding criteria to guide national choices, particularly the designation of supervisory authorities and their powers. This matters for the Bank of Italy because the CSDDD permits financial supervisors to oversee regulated financial firms’ compliance with sustainability due diligence obligations.
Bank of Italy calls for specific transposition criteria for bank crisis reforms and sustainability due diligence
The Bank of Italy has recommended adding specific criteria to Italy’s 2026 European Delegation Bill for implementing EU bank crisis and deposit protection reforms, including national options, sanctions and technical rulemaking powers. It also identifies missing criteria for corporate sustainability due diligence, particularly the designation and powers of supervisory authorities. The bill’s provisions for implementing changes to sustainability reporting requirements are considered sufficiently detailed.