New Tier 1 Capital Rules for Italian Banks

On January 29, 2007, the Rome office authored an Alert Memorandum entitled “New Tier 1 Capital Rules for Italian Banks.” Further to recent changes made to the Italian Banking Act by certain provisions issued by the Italian Government and the Italian Treasury, the Bank of Italy issued on December 27, 2006, a regulation containing the “New Rules on Banking Prudential Supervision”. The alert memorandum describes the implications of this regulation for Italian banks, especially in connection with the Tier 1 capital computation and raising.