MILAN, Dec 2 (Reuters) - UniCredit said on Monday it had received the new minimum requirement for loss-absorbing liabilities Italy’s biggest bank will have to hold starting from June 30, 2022.
UniCredit said the so-called MREL requirement had been set at 10.67% of total liabilities and own funds (TLOF) - equivalent to 25.2% of risk-weighted assets (RWAs) as of Dec. 31, 2017.
The MREL requirement must be met for 8.29% with subordinated instruments taking into account an allowance equivalent to 2.5% of RWAs, UniCredit said.
Following the global financial crisis which resulted in costly bank bailouts, lenders are being required to hold on their balance sheets a large amount of liabilities that can be wiped out to offset potential losses.
Reporting by Valentina Za