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Unicredit says to assess with regulator necessary measures
July 29, 2016 / 8:51 PM / a year ago

Unicredit says to assess with regulator necessary measures

MILAN (Reuters) - Italian bank UniCredit (CRDI.MI) said on Friday it would work with European Central Bank supervisors to assess what it needed to do after industry stress tests showed its core capital ratio neared a closely-watched 7 percent threshold under adverse conditions.

People carrying umbrellas pass a Bank Austria branch office in Vienna, Austria, May 12, 2016. REUTERS/Heinz-Peter Bader

There is no pass or fail threshold in the latest round of stress tests, but analysts said a core capital ratio of less than 7 percent could cause alarm as this is the level where many bonds or contingent capital issues by banks gets written down.

UniCredit said its best-quality CET 1 ratio fell to 7.12 percent in 2018 under the adverse scenario.

The bank said it would asses with supervisors the extent to which credible management actions may offset some of the impact of the adverse scenario and would see whether any additional measures or changes to its capital plan were necessary.

Reporting by Valentina Za

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