(Finance) – The Bank of Italy has identified the banking group UniCredit how global systemically important institution (Global Systemically Important Institution, G-SII) authorized in Italy.
In the choice they influenced “especially the volatility introduced by the new methodology assessment of global systemic banks and the marked depreciation of the euro compared to other relevant currencies”, reads a note from Via Nazionale, which underlines how this last aspect “has led to an increase in the aggregates expressed in euro referring to non-European banks”.
There methodology to identify and classify G-SIIs in the various sub-categories is defined in the delegated regulation EU/2014/1222 of the European Commission. The regulation contains provisions consistent with the provisions of the Basel Committee on Banking Supervision and the Financial Stability Board (FSB), so as to ensure that the same European banks included in the list are identified as G-SIIs on an annual basis published by the FSB with the same periodicity.
“Even in the light ofcurrent uncertainty about the evolution of the economic situation“, the Bank of Italy has exercised its supervisory judgment in order to continue to identify the UniCredit banking group as a G-SII also for 2024, placing it in the first sub-category of global systemic importance.
UniCredit, based on last year’s classification, will have to maintain from 1 January 2023 a capital reserve for G-SIIs – expressed in terms of best quality capital (common equity tier 1, CET1) – equal to 1% of total risk-weighted exposures. This reserve must therefore also be maintained from 1 January 2024.