MILAN, March 29 (Reuters) - Italian lender BFF Bank said on Sunday the Bank of Italy had named two extraordinary commissioners to temporarily work alongside its board to oversee a rapid restructuring
Bank of Italy Appoints Special Administrators to Oversee BFF Bank Restructuring
Overview of BFF Bank's Restructuring and Regulatory Actions
Appointment of Extraordinary Commissioners
MILAN, March 29 (Reuters) - Italian lender BFF Bank said on Sunday the Bank of Italy had named two extraordinary commissioners to temporarily work alongside its board to oversee a rapid restructuring and adopt remedies in its factoring business and the internal control system.
Audit Findings and Identified Issues
Factoring and Lending Activities
BFF said an audit the Bank of Italy has been conducting has highlighted issues with its factoring and lending activities as well as the classification of credits to reflect potential losses.
Internal Control System and Remedies
The issues with the internal control system, and ensuing remedies, relate to accounting and credit management, it said.
Scope of Irregularities
"The findings are part of a wider picture of irregularities and critical issues whose overall scope is still under assessment," BFF said.
Leadership Changes and Investigations
Executive Resignation and Financial Adjustments
BFF said last month that Chief Executive Massimiliano Belingheri was stepping down as the lender booked bad loan provisions, restated past earnings and cut its 2026 targets.
Ongoing Legal Investigation
Reuters later in February reported that Milan prosecutors had opened an investigation into alleged false accounting at BFF.
New CEO Appointment and Collaboration with Commissioners
BFF has named as new CEO its Finance Chief Giuseppe Sica who, following the Bank of Italy's decision, will now work with central bank-appointed commissioners Raffaele Lener and Francesco Fioretto.
(Reporting by Mihika Sharma in Bengaluru and Giulio Piovaccari in MilanEditing by David Goodmann and Valentina Za)
