In this way, the ECB is attempting to mitigate the risks that Raiffeisen Bank and UniCredit still face while operating in a country where they no longer maintain effective control over their activities. This is reported by Reuters citing sources.
Thus, the regulator may adjust the individual capital requirements for banks, which supervisory authorities set annually, to reflect risks that are not covered by broader, industry-wide capital threshold values.
At the same time, Reuters was unable to determine the extent of the potential capital adjustment for the banks. Raiffeisen is also facing ECB demands for recapitalization to account for its exposure to risky loans for commercial real estate.
Representatives of the ECB and UniCredit declined to comment. Meanwhile, a representative from Raiffeisen stated that the bank recently noted an increase in capital requirements starting next year, refusing to comment on the potential ECB demand for capital retention.