UniCredit Secures ECB Approval on Danish Compromise Methodology

UniCredit has received approval from the European Central Bank to implement a new method for calculating its consolidated capital ratios. The Danish Compromise, as it's called, will allow insurance holdings to be treated with risk weighting rather than being deducted from regulatory capital.

The authorization is expected to strengthen UniCredit's capital position by an estimated 52 basis points (bps) to the Common Equity Tier 1 (CET1) ratio. This is based on the group's position as of 2Q26 and represents a key commitment made by the bank to obtain approval by the end of September.

The change will take effect starting from the third quarter of 2026, and UniCredit has stated that it delivers on its promise to secure ECB authorization for this methodology. By treating insurance holdings in this way, UniCredit aims to further increase its disciplined capital allocation.