Identification of UniCredit banking group as a global systemically important institution (G-SII) authorized to operate in Italy in 2016

The Bank of Italy has identified the UniCredit banking group as a global systemically important institution (G-SII) authorized to operate in Italy.

Based on data as at 31 December 2014, the UniCredit group is in the first sub-category of global systemic importance,¹ unchanged  from  the  assessment  based  on  data  as  at 31 December 2013.

According to the transition period envisaged under Directive 2013/36/EU (Capital Requirements Directive, CRD IV), the UniCredit group is required to maintain a capital buffer for the G-SIIs equal to 0.50 per cent of its total risk exposure from 1 January 2017. This represents an increase of 0.25 percentage points in the capital buffer ratio requirement compared with 1 January 2016. The buffer must be increased annually by an amount equal to 0.25 per cent of total risk exposure to reach 1 per cent no later than 1 January 2019. 

The decision was taken pursuant to Bank of Italy Circular No. 285/2013 on prudential regulations for banks, which implements the CRD IV rules in Italy and specifies the criteria on which the methodology for identifying the G-SIIs is based.

The methodology for identifying and allocating G-SIIs to the different sub-categories is set out in the Commission Delegated Regulation (EU) No. 1222/2014. The Regulation contains provisions consistent with the methodology used by the Basel Committee on Banking Supervision and the Financial Stability Board (FSB), in order to ensure that each year the banks identified as G-SIIs correspond to the European banks included in the FSB list, also published annually.

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¹ G-SIIs are classified into five sub-categories in ascending order of systemic importance. Banks belonging to the first sub-category, among which UniCredit, must maintain a capital buffer equal to 1.0 per cent. Banks included in the other sub-categories must maintain a capital buffer equal to 1.5 per cent, 2.0 per cent, 2.5 per cent and 3.5 per cent, respectively. No G-SIIs are included in the last sub-category at present.