Italy’s central bank sets 2027 capital buffers for six banking groups

Banca d’Italia designated UniCredit, Intesa Sanpaolo, Monte dei Paschi di Siena, Banco BPM, BPER Banca and ICCREA as other systemically important institutions, or O-SIIs, authorized to operate in Italy for 2027. The decision was published on 23 October and sets additional capital-buffer requirements for the six groups.

From 1 January 2027, UniCredit and Intesa Sanpaolo must each maintain a buffer equal to 1.25% of total risk-weighted exposure. Monte dei Paschi, Banco BPM and BPER Banca each face a 0.50% buffer, while ICCREA’s is 0.25%. The percentages apply to risk-weighted exposures, rather than to a bank’s total assets or deposits.

The central bank said the identification exercise covered all banking groups and stand-alone banks operating in Italy. It assessed the groups using data as of 31 December 2025 and considered four dimensions: size, importance to the Italian economy, complexity and interconnectedness with the financial system.

All six groups scored above the 300-basis-point threshold Banca d’Italia uses to identify O-SIIs under the European Banking Authority’s guidelines. The regulator said the buffers were assigned using a calibration framework adopted in 2023, which divides institutions among eight buckets of systemic importance. Higher buckets carry larger buffers.

The release notes that merger operations involving some Italian and foreign banking groups were not included where they remained incomplete when the administrative process began. The central bank said it may start a new procedure if those transactions materially change the systemic importance of Italian groups. That caveat matters because the list reflects the assessment record and date, rather than a forecast of future group structures.

O-SII identification and buffer levels are reviewed at least annually under the cited rules. The additional requirements are intended to strengthen resilience where distress at a large or interconnected institution could have broader consequences. The announcement does not provide bank-by-bank scores in its text; the underlying notice includes tables and the regulator’s methodology.

An O-SII buffer is an additional capital requirement attached to an institution’s systemic designation. Banca d’Italia’s release states that it recalculates the designation at least once a year and that the calibration schedule maps systemic-importance buckets to higher buffer rates. The bank-level percentages therefore express regulatory requirements against a risk-weighted base, not a forecast of losses or a ranking of each bank’s overall health.

The decision cites Banca d’Italia Circular No. 285/2013, which implements the European capital-requirement directive and specifies the domestic identification criteria. This makes the annual list part of the prudential framework, while the six percentage rates state the specific additional buffer due from each named group.