Bank of Italy names commissioners for BFF restructuring
Italy's central bank named administrators to help BFF Bank restructure. The move follows an audit that found issues with credit management and internal controls.
The central bank of Italy has appointed two extraordinary commissioners to work alongside the board of BFF BANK SPA to oversee a comprehensive restructuring of the lender. The move is intended to address critical issues identified in the bank's factoring business and internal control systems.
An audit conducted by the national regulator highlighted significant discrepancies in how the bank managed its lending activities and classified credits to reflect potential losses. These findings are part of a broader investigation into irregularities that the bank stated are still being fully assessed. The deficiencies in internal controls specifically relate to accounting procedures and credit management protocols.
This regulatory intervention follows a period of instability for the institution. Last month, former Chief Executive Massimiliano Belingheri stepped down from his position. His resignation coincided with the bank booking substantial provisions for bad loans, restating past financial results, and significantly reducing its performance targets for 2026. Furthermore, legal pressures have mounted as prosecutors in Milan recently initiated an investigation into allegations of false accounting at the firm.
To lead the recovery efforts, the bank has named its former Finance Chief, Giuseppe Sica, as the new CEO. Sica is tasked with implementing remedies in coordination with the central bank-appointed commissioners, Raffaele Lener and Francesco Fioretto, to stabilize operations and restore regulatory compliance.
