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Finance

UniCredit says ECB raises core capital threshold for 2025 to 10.3% from 10%

Published by Global Banking and Finance Review

Posted on December 11, 2024

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MILAN (Reuters) - UniCredit, Italy's second largest bank, said on Wednesday the European Central Bank had set a bank-specific core capital requirement of 10.27% for 2025, up from the 10.03% minimum level set for 2024.

Earlier on Wednesday, Italy's largest lender Intesa Sanpaolo said its core capital requirement for 2025 had been set at 9.89%, up from the previous 9.32%, with a "Countercyclical Capital Buffer" (CCyB) mostly accounting for the increase.

In UniCredit's case the main difference from thresholds the ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-KAZIMIR-00b06d9b-4b99-46ce-a2aa-458d8eb2d993>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB set at the end of 2023 for the current year is the "Systemic Risk Capital Buffer" (SyRB), which UniCredit said stood at 0.2% compared with 0.03% last year.

The CCyB edged up to 0.44% from 0.37%.

The so-called Pillar 2 requirement, which the ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-KAZIMIR-00b06d9b-4b99-46ce-a2aa-458d8eb2d993>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB uses to address risks which are not covered by the minimum capital requirement known as Pillar 1, remained unchanged at 200 basis points.

UniCredit's core capital stood at 16.13% of assets at the end of September. The CCyB and SyRB buffers are calculated on a quarterly basis and can vary accordingly.

The ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-KAZIMIR-00b06d9b-4b99-46ce-a2aa-458d8eb2d993>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB-POLICY-3fdc7763-f2c0-4c30-b494-8614852eaf43>ECB-POLICY-CENTENO-a52f21b9-8975-4dc5-9a21-8c5e8267aa43>ECB sets specific requirements for banks every year after a risk assessment specific to each lender, known as SREP.

(Reporting by Valentina Za, editing by Gavin Jones and Jane Merriman)