Bank of Italy says it is ending COVID-related relief measures for banks

MILAN – The Bank of Italy said on Tuesday it would remove a number of relief measures on banking requirements that had been introduced to help lenders through the COVID-19 crisis.

The decision applies to smaller banks that fall under the Bank of Italy’s oversight and reflects a similar move taken earlier by the European Central Bank for bigger lenders.

The Bank of Italy said smaller lenders would no longer benefit from capital relief measures beyond Dec. 31, 2022 while a liquidity relief measure would end on March 15.

Given the uncertainty weighing on the macroeconomic outlook, the Bank of Italy said it would continue to monitor banks and maintain prudent payout policies.

(Reporting by Valentina Za; Editing by Chris Reese)