UniCredit gets ECB approval to use Danish Compromise on insurance holdings
UniCredit gets ECB approval to use Danish Compromise on insurance holdings MILAN, Sept 8 (Reuters) - UniCredit CRDI.MI has received the European Central Bank's authorisation to apply more favourable rules known as the 'Danish Compromise' to calculate the impact of its insurance holdings on its capital reserves, the Italian lender said on Tuesday.
The so-called Danish Compromise allows banks to risk-weight their insurance investments rather than deduct them in full from capital.
Originally introduced as a temporary European Union arrangement during Denmark's rotating EU presidency, the measure was later made permanent.
UniCredit said it would start applying the new method from the third quarter and expected it to add half a percentage point to its core capital ratio.
Under a push to boost the bank's fee income, UniCredit Chief Executive Andrea Orcel last year completed the internalisation of the bank's domestic life insurance business after buying out partners CNP Assurances and Allianz ALVG.DE.
(Reporting by Valentina Za, editing by Giulia Segreti)
Recent news on UniCredit SpA
See all newsBrief: Bank of Italy identifies 6 Italian banks as Other Systemically Important Institutions (O-Siis) for 2027
European banks seek alternative cross-border expansion strategies, Morningstar DBRS says
Brief: Czech Central Bank Lending Survey: Demand For Corporate Loans Expected To Continue Growing
Deutsche Bank AG FF - Post Stabilisation Notice - HELLA EUR 4yr
Deals of the day-Mergers and acquisitions