Page 43 - Consolidated Non Financial Statement

Banca Ifis

| 2020 Consolidated Non-Financial Statement
3.2 Credit quality

Policies and other reference documentation
• Group system of delegation of authority to manage credit risk
• Group system of delegated powers on the assumption of credit
• Group system of delegated powers for the assumption and management of the credit risk (Cap.Ital.Fin.)
• Group Policy for managing the Most Significant Transactions (MSTs)
• Group policy for reviewing business operations
• Ordinary credit management policy: PHARMA BU (Banca Ifis)
• Ordinary credit management policy: Pharmacies BU (Banca Ifis)
• Ordinary credit management policy: Impresa Italia (Banca Ifis)
• Ordinary credit management policy: Impresa International (Banca Ifis)
• Impairment Policy
• Policy for managing portfolios of receivables purchased outright and due from Public Administration entities
(Banca Ifis)
• Ordinary debt collection and monitoring policy (Banca Ifis)
• Monitoring and collection policy (Cap.Ital.Fin.)
• Monitoring and collection policy (Credifarma)
• Policy for the management of the process of verifying the correct monitoring and adequacy of the collection
process (Banca Ifis) Methodological manual for the individual evaluation of non-performing loans (Banca Ifis)
• Organisational Procedure Management of tax receivables (Banca Ifis)
• NO 112 – Leasing BU - Leasing preparation process (Banca Ifis)
• NO 111 – Leasing BU - Redemption assessment and setting process (Banca Ifis)
• NO 103 – Leasing BU - Subjective credit quality assessment (Banca Ifis)
• Leasing debt collection and monitoring policy (Banca Ifis)
• Policy for managing the acquisitions of distressed loan portfolios and relating monitoring (Ifis Npl investing)
• Distribution Policy (Cap.Ital.Fin.)
• Policy for the management of the collection of distressed captive loans (Ifis Npl Servicing)
• Procedure for Assigning Npls to debt collection units (Ifis Npl Servicing)
• Organisational Procedure for Collecting debts through judicial actions (Ifis Npl Servicing)
• Organisational Procedure for Collecting debts through non-judicial actions (Ifis Npl Servicing)
• Organisational Procedure for Managing payments associated with distressed debt collection operations (Ifis
Npl Servicing)
• Organisational Procedure - Concession and Management of Structured Finance (Banca Ifis)
• Organisational Procedure - Concession and Management of Special Situations (Banca Ifis)
• Organisational Procedure Management of distressed loan non-judicial collector network (Ifis Npl Servicing, Ifis
Npl Investing)
• Policy on insurance distribution carried out by the Bank (Banca Ifis)

Credit quality is closely associated with financial strength, which is key for the sustainability of the Group's business
model and represents one of the pillars of the Group strategy.

In order to incorporate the impacts of the health emergency, analyses were performed and new prudent logics
implemented, as well as the institutional measures introduced to temporarily support the national economy. For more
information on the impacts of COVID-19 on the financial position and business performance, please refer to the
paragraph entitled “Risks, uncertainties and impacts of the COVID-19 epidemic”, Part A - Accounting policies (A.1 -
General part, Section 5 - Other aspects) of the “2020 Consolidated financial statements and reports”.

The quality of credit can significantly affect the Bank's share price, credit rating, dividends, and financial position - all of
which are material to shareholders, financial analysts, ratings agencies, lenders, and Supervisory Authorities - as well
as customer trust in the Bank's ability to service its obligations, which is especially important for the retail customers of
the Rendimax product.

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