Identification of the UniCredit banking group as a global systemically important institution (G-SII)

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

The methodology for identifying and allocating G-SIIs to the different subcategories[1] is set out in 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's list, also published annually.

Based on data as at 31 December 2021, the UniCredit group is not automatically identified as a G-SII. However, the drop in its score was mostly driven by exogenous factors rather than a change in its systemic importance, particularly the volatility associated with the introduction of the new identification methodology and the significant depreciation of the euro vis-à-vis other major currencies. The latter determined an increase in the aggregates valued in euros for non-European banks.

Also in light of the current high level of uncertainty surrounding the economic outlook, the Bank of Italy has decided to exercise supervisory judgment to continue to identify the UniCredit group as a G-SII in 2024, allocating the bank to the first subcategory of global systemic importance.

Based on the previous year's classification, the UniCredit group is required to maintain, from 1 January 2023, a capital buffer for the G-SIIs - in terms of best quality capital (Common Equity Tier 1, CET1) - equal to 1.0 per cent of its total risk exposure. This buffer must also be maintained from 1 January 2024.

The decision was taken pursuant to Bank of Italy Circular No. 285/2013 (prudential regulations for banks), which implements Directive 2013/36/EU in Italy and specifies the criteria on which the methodology for identifying G-SIIs is based.

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[1] G-SIIs are classified into five subcategories in ascending order of systemic importance. Banks belonging to the first subcategory, among which UniCredit, must maintain a capital buffer equal to 1.0 per cent. Banks included in the other subcategories 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 subcategory at present.