Looking for the obligations introduced by the BankIT Circular 285 new update? Ask Daitomic!


Accurate, real-time compliance is possible - even when it comes to BankIT Circular285

In the continuous stream of regulatory updates that invests financial compliance professionals, surely the 42nd update of 30 March 2023 to Circular 285 of 17 December 2013 issued by the Bank of Italy has not gone unnoticed. Indeed, this document regulates a large part of the regulatory perimeter regarding “Supervisory Provisions for Banks” in Italy. Having deeply analyzed the working processes of banking compliance, we are aware of the need for innovative technological tools to enable financial institutions to automate those steps of compliance processes that do not require human analytical and decision-making skills. And our RegTech SaaS, Daitomic, is designed precisely to provide compliance professionals with accurate, real-time regulatory analysis. Even with respect to BankIT Circular 285.

The 42nd update to BankIT “Supervisory Provisions for Banks” (Circular 285/2013)

We have already presented several use cases with respect to how Daitomic can concretely help compliance professionals. From ESG objectives to compliance with the EU DORA Regulation to the recent Bank of Italy Circular 269 update. But ,within the Italian regulatory landscape, the most relevant news for all financial institutions is the 42nd update to the “Supervisory Provisions for Banks”, contained in Circular 285/2013, published by the Bank of Italy less than two weeks ago. This document introduced important changes to the regulations on covered bonds in Italy. In particular, the legislator's changes focused on Chapter 3 of Part Three, in order to transpose the new European regulations on covered bonds. These provisions provide a supervisory regime for Guaranteed Bank Bonds issuance programs and assign the responsibility for their supervision to the Bank of Italy, both for significant and less significant banks, while always assigning to BankIT the task of authorizing or not, after evaluation, the launch of new Guaranteed Bank Bonds issuance programs. The new regulations, in fact, define the conditions for receiving authorization from the Bank of Italy to start new issuance programs, including the evaluation criteria, the information that applicants must submit to the authority and the content of the issuance program. The various updated sections of Circular 285 introduce several regulatory requirements, such as the introduction of specific organizational and risk management safeguards arising from the program, the requirement for participating banks to have internal operating limits on the disposal of eligible assets, investor disclosure requirements, and the requirement for banks to notify the Bank of Italy in advance of their intention to make a new covered bond issue for the first time under an existing program on the effective date of the new provisions. In short, the regulatory changes made by the 42nd update of Circular 285 are many and have a high impact on financial institutions in the Italian banking landscape.

The RegTech power of Daitomic for an automated regulatory analysis of 285 in real-time

This is why the work of analyzing the regulatory perimeter inherent in “Supervisory Provisions for Banks” involves a great effort in terms of time and resources from the compliance function of financial institutions. Conducting such impact analyses accurately and quickly is only possible with the support of technological tools, like Daitomic, which are adequate to handle the quantity and complexity of regulatory updates. Indeed, our RegTech SaaS leverages Artificial Intelligence to automate some specific steps of compliance processes exploiting an innovative standard, electronic and machine readable format of banking regulations. The latter enables an automated analysis on legal data, offering compliance professionals the ability to interactively navigate regulations and compare the differences between enacted versions, thus immediately identifying the new regulatory requirements and obligations introduced by each update.

But Daitomic also makes it possible to prepare a first-impact analysis on the regulatory perimeter identified by the regulations of interest, through the automatic extraction of obligations and penalties related to a specific regulatory update, in respect to the previous document.

The obligations automatically extracted by Daitomic can then be cross-referenced with the impacted internal processes and policies, thus resulting in an automated first-impact analysis. That's why, even when facing a high-impact regulatory update such as the changes made by the Bank of Italy to the Circular 285, Daitomic enables financial institutions to greatly reduce the time required and the risk of error within compliance processes. Learn more about Daitomic by booking a demo with a click below!