UniCredit Receives ECB Approval for 'Danish Compromise' to Boost Capital Ratios

The European Central Bank (ECB) has authorized UniCredit to apply the 'Danish Compromise' methodology for calculating its consolidated capital ratios. This regulatory change, effective from the third quarter of 2026, allows the bank to treat insurance holdings through risk weighting instead of deducting them from regulatory capital. This is expected to strengthen UniCredit's Common Equity Tier 1 (CET1) ratio by approximately 52 basis points, enhancing its capital position and supporting more disciplined capital allocation.