The administrators act independently of the Bank of Italy, which only authorizes certain decisions of particular importance. The functions of the shareholders’ meeting are suspended until the procedure comes to a close.
As the underlying cover pools are mainly composed of government bonds and mortgages, developments in these markets are of fundamental importance to the Pfandbrief. Sound public finances, a healthy housing market and a stable economic environment are the pillars that underpin the reliability of the Pfandbrief.