ECB Approves UniCredit's Use of Danish Compromise Methodology
UniCredit has received approval from the European Central Bank (ECB) to use the Danish Compromise methodology for calculating its consolidated capital ratios. This approval will allow the bank to treat insurance holdings through risk weighting instead of deducting them from regulatory capital, starting with third quarter 2026 reporting.
The authorization is expected to strengthen UniCredit's capital position by approximately 52 basis points to the CET1 ratio, based on the bank's position as of the second quarter 2026. This increase in capital will be a result of not deducting insurance holdings from regulatory capital.
The approval meets UniCredit's commitment to obtain authorization by the end of September and reinforces the bank's disciplined capital allocation.