(Reuters) – UniCredit SpA is facing the possibility of higher capital requirements next year, with the European Central Bank (ECB) seeking to ensure the Italian bank’s resilience against risks from Russia’s war in Ukraine and the economic downturn, Bloomberg News reported on Friday.
The ECB has indicated to UniCredit that it’s considering raising the firm’s so-called Pillar 2 requirement, which currently stands at 1.75%, the report said, citing sources.
UniCredit and the ECB declined to comment.
The Bloomberg report also said that the central bank’s annual risk review should be finalised as soon as next week and added that no formal communication on the capital requirement decision had been relayed to UniCredit.
(Reporting by Aarati Krishna in Bengaluru; Editing by Mark Potter)