ECB, UniCredit clash over capital plans, Russia presence, FT says

Published On : 11/07/2022

(Reuters) – The European Central Bank (ECB) has clashed with UniCredit over the Italian lender’s plans to return cash to shareholders and its failure to leave Russia, the Financial Times reported on Sunday.

The ECB had objected to UniCredit’s commitment to distribute 16 billion euros ($15.85 billion) to shareholders by 2024, saying the move ran contrary to official guidance that “banks should not set their dividend policies in terms of absolute amounts”, the newspaper said, citing people briefed on the discussions.

The report further said that, there is also tension over UniCredit’s failure to cut ties with Russia, as the ECB views the bank’s Russian presence as an unwelcome source of risk and has been pushing it to exit the country.

UniCredit last month said it expected a 400 million euro contribution from the ECB’s longer-term funds this year under the central bank’s new terms, while it no longer saw any potential benefits next year.

The ECB and UniCredit did not immediately respond to Reuters’ request for comment.

($1 = 1.0094 euros)

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Paul Simao)

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.