Bank of Italy scrutinises smaller banks' funding from online deposit platforms

CNA
2026.04.29 17:15
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The Bank of Italy is increasing scrutiny on smaller banks' reliance on funding from online deposit platforms, which allow for cross-border retail deposits. Following the March 2023 banking turmoil, concerns have risen regarding the liquidity risks associated with these digital deposits, particularly for smaller banks that lack diverse funding sources. As of December 2025, 30 Italian Less Significant Institutions (LSIs) had raised 11.5 billion euros through these platforms, accounting for 10% of their total funding. The Bank of Italy warns that such deposits are volatile and pose higher risks of money laundering and terrorism financing.