On 10 February 2016, the government approved decree no. 18/2016 (the "Decree") which, after months of discussions and speculation, introduces some important reforming measures for the Italian credit cooperative banks (the "BCCs"), with the aim of eliminating structural weaknesses in the cooperative banking system.

The Decree came into force upon publication in the Official Gazzette on 15 February 2016 and must be converted into law within 60 days. Further amendments may be introduced during the conversion process and in any implementing rules promulgated by the Bank of Italy or the Italian Ministry of Economy and Finance.