UNICREDIT

The European Central Bank has allowed UniCredit to apply the "Danish compromise" in capital ratio calculations. From Q3, stakes in insurance companies no longer have to be deducted from regulatory capital but will be treated as risk-weighted assets. The bank says this raises the common equity Tier 1 (CET1) ratio by 52 basis points based on the Q2 balance sheet. UniCredit shares traded in Milan were at times about 0.65% weaker. » Plus sur finanzen.net

The European Central Bank has approved UniCredit’s use of the so‑called Danish compromise in capital ratio calculations. From the third quarter, the bank no longer has to deduct stakes in insurance companies from regulatory capital but can treat them as risk‑weighted assets. Based on the second‑quarter balance sheet position, the common equity Tier 1 (CET1) ratio improves by 52 basis points. » Plus sur finanzen.net

Hesse’s minister-president Boris Rhein met Unicredit chief Andrea Orcel and demanded that Commerzbank be preserved as a German stock corporation with its own listing, and that its legal seat and executive board remain permanently in Frankfurt. All functions relevant to banking business should stay in Frankfurt, the name Commerzbank should be retained as the main brand in Germany, and the corporate client business must not be transferred to HVB or other Unicredit units. The demands come against the backdrop of a planned takeover and a possible merger with HVB, as well as competing location preferences for the German headquarters. » Plus sur handelsblatt.com