Unicredit is no longer global systemic bank. The Financial Stability Board updated the list of banks that are judged to be of systemic importance at a global level (G-Sibs), based on the balance sheet data at the end of 2022 and using the evaluation methodologies agreed within the Basel Committee on Banking Supervision. Added to this is the identification of Bank of Italy, for 2024, dei national systemically important banking groups (O-SII) authorized in Italy and defined the specific capital reserve that they must respect. In the first case, the banking institution led by Andrea Orcel leaves the list of global systemic banks. In the second, the Milanese group appears together with Intesa Sanpaolo, Banco Bpm, Bper Banca, Mediobanca, BNL (BNP Paribas group) and the cooperative banking group Iccrea, while Banca Monte dei Paschi di Siena was removed from the review phase.
FSB: Unicredit is no longer a global systemic bank
The international body has removed Unicredit from the list of global systemically important banks, the only Italian one. Also Credit Suisse was removed, while C. was added for the first timehina's Bank of Communications. Thus the overall number of G-Sibs dropped from 30 to 29. ubs took a leap forward after taking over Credit Suisse earlier this year in the first merger of two systemically important banks.
Depending on their characteristics, systemically important banks are required to respect margins (buffer) additional on levels of capital solidity.
The maximum level of additional margins corresponds to 5 category, in which no institute appears. In the 4 category, with an additional margin of 2,5% JP Morgan Chase appears. In category 3, with an additional margin of 2%, Bank of America, Citigroup and HSBC are included.
In 2 category, with a margin of 1,5% appear: Agricultural Bank of China, Bank of China, Barclays, Bnp Paribas (which controls Bnl in Italy), China Construction Bank, Deutsche Bank, Goldman Sachs, Industrial and Commercial Bank of China Mitsubishi Ufj Fg and Ubs (which took over its compatriot Credit Suisse).
Finally, in the 1 category, with a 1% buffer, include: Bank of New York Mellon, the new entry Bank of Communications, Groupe Bpce, Groupe Crédit Agricole, Ing, Mizuho Fg, Morgan Stanley, Royal Bank of Canada, Santander, Société Générale, Standard Chartered, State Street, Sumitomo Mitsui Fg, Toronto Dominion and Wells Fargo.
Bank of Italy: the seven systemic banks for 2024
If on the one hand Unicredit leaves the international list, on the other it is confirmed in the list of national systemically important banks as it respects the requirements set by Bank of Italy.
Here are the capital reserves that these banks will have to respect: Unicredit, Intesa Sanpaolo e Banco bpm they will have to maintain, from 1 January 2024, a capital reserve (buffer) at 1,50%, 1,25% and 0,50% of their overall risk-weighted exposures (RWA) respectively. For Bper, Mediobanca, Iccrea e Bnl the buffer to be reached within two years is 0,25% of the RWA, after a transitional period during which the percentage is 0,125%.
The decision was taken pursuant to circular no. 285/2013 of the Bank of Italy (Supervisory provisions for banks), which implements in Italy the provisions of EU Directive/2013/36 and explains the criteria on which the methodology for identifying O-SIIs is based.
One of the new is that Via Nazionale has decided to lower from 350 to 300 basis points il minimum value of overall score necessary for the automatic identification of an Italian bank of national systemic importance. The identification took into consideration, for each bank, the contribution of the four profiles (size, importance for the Italian economy, complexity, interconnection with the financial system) indicated by the EBA guidelines. Based on data referring to 31 December 2022, the overall scores of the seven banks exceed the threshold of 300 basis points used by the Bank of Italy and compliant with EBA guidelines.
