Identification of the UniCredit, Intesa Sanpaolo and Banco BPM banking groupsas other systemically important institutions authorized to operate in Italy

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The Bank of Italy has identified the UniCredit, Intesa Sanpaolo and Banco BPM banking groups as other systemically important institutions (O-SIIs) authorized to operate in Italy in 2019. Compared with last year, the Monte dei Paschi di Siena group is no longer identified as an O-SII.

UniCredit, Intesa Sanpaolo and Banco BPM will have to maintain a capital buffer of 1.00, 0.75 and 0.25 per cent, respectively, of their total risk-weighted exposure, to be achieved according to the transitional periods shown in Table 1. As of January 2019, Monte dei Paschi di Siena will not be required to maintain any O-SII capital buffer.

Table 1 - Transitional period applicable to the O-SII buffers
(per cent)

Banking group

From
1 Jan. 2018

From
1 Jan. 2019

From
1 Jan. 2020

From
1 Jan. 2021

From
1 Jan. 2022

UniCredit

0.25

0.50

0.75

1.00

1.00

Intesa Sanpaolo

0.19

0.38

0.56

0.75

0.75

Banco BPM

0.00

0.06

0.13

0.19

0.25

Monte dei Paschi di Siena

0.06

0.00

0.00

0.00

0.00

The decision was taken pursuant to Bank of Italy Circular No 285/2013 (prudential regulations for banks), which implements Directive 2013/36/EU and specifies the criteria on which the methodology for identifying O-SIIs is based. The assessment was carried in accordance with the European Banking Authority Guidelines (EBA/GL/2014/10), which set out the criteria and data required to identify O-SIIs in EU jurisdictions.

The assessment covered all banking groups, as well as banks not part of a banking group operating in Italy. The identification considered, for each bank/banking group, the four categories set by the EBA guidelines, i.e. size, importance for the Italian economy, complexity and interconnectedness with the financial system.

Considering the data as at 31 December 2017, the overall score which indicates the domestic systemic importance of the four banking groups is above the threshold set at 350 basis points that the EBA Guidelines use to identify O-SIIs. The score for Monte dei Paschi di Siena fell below the threshold, due to the reduction in all the categories considered (see Table 2).

Table 2 - Overall and category scores and variations from previous year
(basis points)

Banking group

Overall
score

Size

Importance

Complexity

Interconnect-edness

 

2017

var.

2017

var.

2017

var.

2017

var.

2017

var.

UniCredit

3,429

-25

2,871

171

2,014

-107

5,377

178

3,585

-209

Intesa Sanpaolo

2,631

113

2,160

-117

2,657

143

2,933

164

2,817

304

Banco BPM

373

-24

537

9

557

21

190

-4

216

-113

Monte dei Paschi di Siena

322

-53

464

-18

391

-15

245

-164

199

-5

To calibrate the O-SII buffer, the framework proposed last year was maintained, based on six buckets of systemic importance. Buckets are associated with buffers, increasing by 0.25 percentage points
(see Table 3).

Table 3 - Categories of systemic importance

Bucket

O-SII score interval

O-SII buffer

6

4,000 and up

1.25%

5

[3,000-3,999]

1.00%

4

[2,000-2,999]

0.75%

3

[1,000-1,999]

0.50%

2

[350-999]

0.25%

1

[0-349]

0.00%

Pursuant to the regulations, the identification of O-SIIs and the level of the O-SII buffers will be reviewed at least once a year.

Annexes