Guidelines on revolving credit

The Bank of Italy has released Supervisory Guidelines on Revolving Credit, with the aim of drawing banks‘ attention to the main issues in this sector in terms of focusing on customer relations and fair practices for consumers.
The Bank of Italy has identified inconsistencies in interpreting certain regulatory provisions, governance and product control issues, weaknesses in the offering and placement of revolving credit, and areas for improvement in the conduct of supervised operators. Consequently, the Bank of Italy deems it necessary for intermediaries to strengthen the measures adopted to enhance customer awareness about the characteristics and costs of revolving credit.
The Guidelines are divided into three areas of intervention:
I. Governance and organizational profiles
II. Operational conduct
III. Internal controls
For each area, the Bank of Italy highlights best practices, encouraging intermediaries to progressively align with them. The Bank of Italy will consider the content of the Guidelines when conducting transparency and fairness checks in the revolving credit sector.