Banca Farmafactoring, known as BFF Bank, is operating with stable capital buffers above regulatory minimums despite repeated intervention by the Bank of Italy, glistatigenerali.com reported. The institution specializes in non-recourse factoring of receivables owed by public administrations, particularly within the healthcare sector.
Banca d’Italia Demands New Receivables Classifications
The regulatory dispute began in 2024 when the Bank of Italy directed BFF to reclassify €1,361 million in state receivables into past-due categories. By November 2025, the Bank of Italy removed those initial restrictions after BFF adjusted its capital targets, setting a Common Equity Tier 1 (CET1) ratio target of 13.0%. At that time, the group held an actual CET1 ratio of 14.3%, leaving €65 million in excess capital above the new target.
Regulatory Reversal Introduces Co-Directors
The new supervisory measure warned that potential past-due exposures could expand by up to c. €0,8 mld from default contagion rules involving default interest and up to c. €0,5 mld from stricter interpretations of arrears calculation methods. During the first-half 2026 earnings conference call, bank chief executives countered that the metrics remain manageable. BFF reported a CET1 ratio of 11.1% against a 9.9% regulatory requirement, alongside a Total Capital Ratio of 13.6% against a 13.4% requirement, rendering an immediate capital increase unnecessary.
Internal capital covers projected 2028 provisioning requirements
BFF management stated that the initial market alarm surrounding €1,3 mld in newly flagged past-due items has already subsided significantly. Executives noted that the headline exposure figure dropped by hundreds of millions of euros within months. Projected calendar provisioning requirements for 2028 are estimated at no more than €130m, an amount covered by internal capital generation. The bank’s business model relies on rapid cash collection cycles from public debtors. First-half 2026 data show that nearly all 2025 receivables have cleared the portfolio, while 70% of new 2026 receivables were collected within the first six months of the year.
BFF Bank addresses capital ratios and receivables
Does BFF Bank need to raise new capital?
Bank executives stated during the mid-2026 earnings call that no capital increase is required, noting that capital ratios sit above regulatory thresholds despite the newly imposed supervisory rules.
What is the status of the contested past-due receivables?
Management reported that headline exposure figures have decreased substantially since initial market announcements, with projected 2028 provisioning impacts estimated at roughly €130m.
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