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BFF Bank Faces Audit, Commissioners Appointed
29 Mar
Summary
- Bank of Italy appointed commissioners to oversee BFF Bank's restructuring.
- Audit revealed issues in factoring, lending, and credit loss classification.
- CEO stepped down amid provisions, restated earnings, and cut targets.
The Bank of Italy has appointed two extraordinary commissioners to assist BFF Bank's board in a swift restructuring process. These commissioners will oversee remedies for issues identified in the bank's factoring business and its internal control system.
An audit conducted by the Bank of Italy highlighted problems concerning BFF Bank's factoring and lending operations. Additionally, the audit focused on how the bank classifies credits to account for potential losses. The internal control system's deficiencies and required remedies relate specifically to accounting and credit management practices.
These issues are described by BFF Bank as part of a broader context of irregularities and critical problems that are still being assessed. The bank's former Chief Executive, Massimiliano Belingheri, recently resigned, following provisions for bad loans, restated earnings, and reduced future targets. Milan prosecutors also initiated an investigation into alleged false accounting at BFF Bank in February.
Giuseppe Sica, the current Finance Chief, has been appointed as the new CEO. He will collaborate with the central bank-appointed commissioners, Raffaele Lener and Francesco Fioretto, as the bank navigates this period of significant oversight and reform.
