The Central Bank of the Republic of San Marino published remarks by its President, Catia Tomasetti, delivered at an ABS conference on crisis management, emphasising the need for timely, structured tools to prevent and manage business distress and limit spillovers to banks and the wider economy. Tomasetti argued that business crises inevitably affect the banking system, making it essential for banks to maintain proactive systems to detect and manage impaired loans and to support companies’ return to bonis. She also highlighted the need for legal mechanisms to restructure indebtedness, including out-of-court solutions such as negotiated crisis settlements, and called on supervisors to balance continued credit access for companies emerging from crises with the protection of banks’ assets and stability. Against the backdrop of European developments, she flagged the need to update San Marino’s business crisis rules and pointed to participatory financial instruments as a potential tool to enable flexible debt restructuring and business continuity solutions.
Central Bank of San Marino 2025-06-18
Central Bank of the Republic of San Marino calls for updated business crisis framework and proactive impaired loan management
Central Bank of San Marino President Catia Tomasetti stressed at an ABS conference the need for timely tools to manage business distress, preventing spillovers to banks and the economy. She advocated proactive bank systems for impaired loans and legal mechanisms for debt restructuring, including out-of-court solutions. Tomasetti highlighted updating San Marino’s crisis rules and suggested participatory financial instruments for flexible debt restructuring.