Italy's top three banks 'systemically important', need buffer -CenBank
The Bank of Italy has declared Intesa and Monte dei Paschi as "systemically important institutions", alongside UniCredit, and has called for the banks to hold a capital buffer against their assets from 2018. Over the next four years, the capital will rise to 1% of assets for UniCredit in 2021, 0.75% for Intesa and 0.25% for Monte dei Paschi. Sunday's constitutional referendum will determine whether Monte dei Paschi attempts to raise €5bn to prevent closure.
Italy's top three banks 'systemically important', need buffer -CenBank

MILAN, Nov 30 (Reuters) - Italy's top three banks UniCredit , Intesa Sanpaolo and Monte dei Paschi will need to hold additional capital against their assets from 2018 as they are "systemically important institutions", the Bank of Italy said.

UniCredit is Italy's only globally systemically important institution (G-SIFI). On Wednesday, the Bank of Italy said in a document on its website UniCredit had also been classed, together with Intesa and Monte dei Paschi, as an "Other Systemically Important Institution" (O-SII).

Starting from 2018 the three banks will be required to hold a capital buffer set to increase gradually over the next four years to reach 1 percent of assets for UniCredit in 2021, 0.75 percent for Intesa and 0.25 percent for Monte dei Paschi.

Italian banks are widely seen as undercapitalised and they are struggling under a pile of bad loans left behind by a deep recession that ended in 2013.

Monte dei Paschi is awaiting the outcome of a crucial constitutional referendum on Dec. 4 before attempting to launch a share sale to raise 5 billion euros ($5.3 billion) in capital this year to stave off the risk of being wound down.

UniCredit is expected to launch a cash call for up to 13 billion euros in February, sources have said.

($1 = 0.9438 euros)