March 8 (Reuters) – Italy’s third-largest financial institution Banco BPM (BAMI.MI) stated on Wednesday it will apply for a beneficial regulatory therapy of its insurance coverage holdings and anticipated on this manner so as to add half a share level to its best-quality capital ratio.
Banco BPM stated it had been recognised as a monetary conglomerate by the European Central Financial institution (ECB), a prerequisite that may enable it to entry a extra beneficial manner of calculating consolidated capital ratios.
Beneath European Union banking guidelines often known as ‘Danish compromise’, as a result of they have been authorised in 2012 when Denmark held the EU presidency, banks are allowed to threat weigh their insurance coverage investments as an alternative of deducting them from capital.
Banco BPM owns insurance coverage companies Banco BPM Vita and Banco BPM Assicurazioni.
The ECB granted Banco BPM the standing of monetary conglomerate after the Italian financial institution gained full management of its Banco BPM Vita and Banco BPM Assicurazioni insurance coverage joint-ventures in July 2022, by shopping for out French accomplice Covea.
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Since then Banco BPM has offered a 65% stake in its non-life enterprise Banco BPM Assicurazioni to Credit score Agricole (CAGR.PA), whereas retaining full management of the life insurance coverage operations.
Reporting by Alberto Chiumento; modifying by Valentina Za
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