Banca IFIS CEO Replaced Amidst Bank of Italy Probe

Banca IFIS has named Raffaele Zingone as its new chief executive officer, effective immediately. This leadership change comes after a thorough inspection by the Bank of Italy between January and June. The supervisory audit highlighted concerns regarding anti-money laundering, digital technology, and operational risks within the Italian lender.

The central bank also questioned the adequacy of IFIS's internal control system and its overall governance structure. In response, IFIS is committed to reviewing its credit procedures, hiring new professionals, and reinforcing its internal risk and control functions. The lender is also developing a new business plan to address the identified issues.

The Bank of Italy has a 90-day period to decide on any potential additional capital requirements for Banca IFIS. The lender has stated it will use the subsequent 45 days to present its observations. Two penalty proceedings have been initiated against the bank by the regulator.

Furthermore, IFIS is in the process of selling its bad loan operations, having received non-binding bids and aiming for a year-end conclusion. The bank's board had previously authorized the incorporation of illimity, a specialist in bad loans, as part of a consolidation trend in Italian banking.