UniCredit, for example, was requested by the ECB to have a 10.07 percent of Common Equity Tier 1 (CET 1) ratio as of March 1. At the end of 2018, the bank had a 12.13 percent CET 1 ratio.
Tier 1 capital ratio is actually the ratio of a bank’s core equity capital to its total risk-weighted assets. More simply, This specific’s the level of reserve funding of which a bank can call on to mitigate against sudden shocks or losses.
Banco BPM said the ECB requested a CET 1 ratio of 9.31 percent This specific year. This specific also said of which as of the end of 2018, its CET 1 ratio stood at 12.1 percent.
This specific data is actually not publicly disclosed by the ECB. Banks can decide whether to publish the requirements set by the regulators.
According to Kinmonth, Italian banks have been given requirements which are largely the same as those requested inside the previous year, indicating of which banks do not need to enhance their capital positions.
“All the main banks right now comfortably exceed the minimum thresholds set by ECB in addition to also therefore face no restrictions on dividend distributions, bonuses or capital coupon payments. The fact there is actually not an increase (which would certainly be costly to a bank), is actually being taking as a positive by markets,” Kinmonth added.
Fabio Trussardi, analyst at UBS global asset management told SouthIndianNews.com Monday of which share were higher because “the ECB decision means some theoretical capital relief (through lower capital requirement)…in addition to also because This specific means of which the regulator is actually satisfied with the banks’ progress inside the non-performing loans’ reduction.”
Since the start of the year, shares of UniCredit in addition to also Intesa Sanpaolo are up by about 6 percent in addition to also 4 percent respectively. Meanwhile, inside the same time frame, shares of Banco BPM are down by 6 percent, while Ubi Banca is actually down 13 percent.