16/04/2018 (Agence Europe) – On Friday 13 April, the European Commission approved an Italian liquidation scheme targeting small banks with assets of a total value of less than €3 billion when they enter into default. Under the approved mechanism, the Italian deposit guarantee systems may work to support the transfer of the assets and liabilities of failing banks to another banking institution under the national insolvency procedures. The institution assessed the measure in light of its 2013 Banking Communication and the Directive on Deposit Guarantee Schemes. In particular, it observed that the aid would be limited to what is strictly necessary to allow an orderly removal of the banks from the market, involving the shareholders and debt holders. It therefore concluded that the measure was compatible with EU state aid rules. (LT)