The Central Bank of the Republic of San Marino announces that on July 1, 2021, a Shareholders’ Meeting was held, attended by Marco Gatti, the Secretary of State for Finance and Budget, and Roberto Ciavatta, the Secretary of State for Health and Political Affairs, representing the Esteemed Chamber. The meeting also included representatives from the banks participating in the endowment fund.
During the meeting, the following resolutions were adopted:
• Approval of the 2020 Financial Statements;
• Approval of the “Final Report on Activities and the Financial System Performance for 2020”;
• Appointment of an Auditor.
Central Bank would like to extend its heartfelt congratulations to Dr. Valentina Di Francesco, who, following the completion of her first term, has been appointed by the Minority Shareholders and re-elected by the General Assembly, pursuant to Article 16 of the Statute, as Auditor for the upcoming three-year term.
Regarding the 2020 financial statements, which were unanimously approved, CBSM highlights that the result of core operations, which amounted to just under -€0.8 million, is primarily attributable to challenges faced in the financial markets due to the pandemic. The negative impact of these events was not fully mitigated despite a significant reduction in administrative costs. The prudential provisions of €3.9 million, together with those from the previous year amounting to €1.9 million, will be entirely reinstated in the income statement during the 2021 FY, following the completion of the planned sale of BNS on June 30, 2021. The cost rationalization efforts that began in 2019 have continued, in line with the provisions of Article 52 of Law No. 173/2018, under which the Board of Directors approved a "cost rationalization plan for the 2019 financial year." This project, consistently monitored by the Board, has resulted in additional cost reductions of €0.42 million compared to the previous year (-4.46%). To cover the operating deficit incurred in 2020 and stabilize the financial outcome, the Board of Directors has decided to use the general financial risk reserve, which serves as a capital reserve available to the governing body, with the aim of closing the financial year at break-even.
The Shareholders' Meeting also approved the "Annual Report on Activities and Financial System Performance in 2020," which outlines not only the performance of the system in the past year but also the activities undertaken, with the valuable and concrete contribution of all stakeholders. Their efforts enabled the system to overcome several critical challenges, identifying and initiating a new development path, fully compliant with international regulations and standards, as well as best practices in financial system supervision and management, thereby achieving positive results for San Marino.
Among the key operational achievements successfully completed during 2020, particular emphasis should be placed on the completion of the transfer of liabilities covered by the BNS to other institutions, the removal of the deficit of the bank subject to resolution, and the issuance of bonds in compliance with applicable regulations. Additionally, it is important to highlight that Cassa di Risparmio della Repubblica di San Marino has fully repaid all bonds issued following the bulk transfer of assets and liabilities of Asset Banca, as well as the issuance of the irredeemable security which facilitated the removal of the 5ter item, thereby releasing the reserves of the credit institution.
The complete texts regarding the "Annual Report 2020" and the "Final Report on the Activities Performed and the Performance of the Financial System 2020" are available.