‘Aggressive’ UniCredit springs surprise after targeting P2R capital relief

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By Tyler Davies
05 Dec 2019

Bank capital experts were taken aback this week after UniCredit suggested that it would use subordinated debt to count towards its Pillar 2 capital requirements — a development that, if copied, could lead to a surge in the supply of additional tier one (AT1) and tier two bonds. It could also help financial institutions offset the negative capital impact of Basel IV. Tyler Davies reports.

UniCredit generated a lot of interest when it said at its capital markets day on Tuesday that it would change the composition of its Pillar 2 requirements (P2R).

The Italian bank, led by CEO Jean Pierre Mustier, highlighted an already well-flagged update in the text of ...

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