Finance
Bank of Italy Appoints Special Administrators to Support Bff Board in Lender's Restructuring
Published by Global Banking & Finance Review®
Posted on March 29, 2026
2 min readLast updated: March 29, 2026
Add as preferred source on Google
Quick Summary
The Bank of Italy has appointed two extraordinary commissioners to assist BFF Bank’s board in a rapid restructuring, following identified weaknesses in its factoring operations, credit classifications and internal controls amid ongoing accounting irregularities investigations.
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)
Key Takeaways
- •Two special commissioners—Raffaele Lener and Francesco Fioretto—have been named to support BFF’s board with restructuring and remedy measures in its factoring and internal control systems (investing.com)
- •An audit by the Bank of Italy uncovered problems in BFF’s classification of public‑sector credits, days past due metrics and internal accounting processes (investing.com)
- •CEO Massimiliano Belingheri stepped down, replaced by finance chief Giuseppe Sica (now CEO/General Manager) as part of governance changes amid a restatement of past earnings, €95m in provisions and sharply reduced 2026 profit targets (globalbankingandfinance.com)
References
Frequently Asked Questions about Bank of Italy appoints special administrators to support BFF board in lender's restructuring
1Why did the Bank of Italy appoint special administrators for BFF Bank?
The Bank of Italy appointed administrators after an audit revealed irregularities and critical issues in BFF Bank's factoring business and internal control system.
2What were the main issues found in BFF Bank's operations?
The audit highlighted problems with factoring and lending activities, the classification of credits to reflect potential losses, and weaknesses in the internal control system.
3Who are the new administrators working with BFF Bank's board?
Raffaele Lener and Francesco Fioretto were appointed as extraordinary commissioners to work alongside BFF Bank's board during the restructuring.
4What steps has BFF Bank taken in response to the audit findings?
BFF Bank has named Giuseppe Sica as its new CEO and is adopting remedies in accounting and credit management as part of the restructuring process.
5What previous actions have been taken at BFF Bank related to the findings?
BFF Bank’s previous CEO stepped down after the bank booked provisions for bad loans, restated past earnings, and faced a false accounting investigation.
