Italy's systemically important banks updated, capital buffers adjusted
Banca d'Italia has identified BPER Banca and Monte dei Paschi di Siena as new Other Systemically Important Institutions (O-SIIs) in Italy. These groups, along with five others, will be subject to specific capital buffers ranging from 0.25 to 1.25 percent, effective from January 1 and April 1, 2026.
New systemic players emerge
Banca d'Italia has updated its list of Other Systemically Important Institutions (O-SIIs) authorized to operate in Italy, identifying BPER Banca and Monte dei Paschi di Siena as new additions.
This follows consolidation operations involving these groups, which could not be considered in the previous November identification procedure.
Starting April 1, 2026, both BPER Banca and Monte dei Paschi di Siena will be required to maintain an O-SII capital buffer of 0.50 percent of their total risk-weighted exposures.
The existing O-SIIs – Intesa Sanpaolo, UniCredit, Banco BPM, ICCREA, and Banca Nazionale del Lavoro – continue to be subject to buffers ranging from 0.25 to 1.25 percent, effective from January 1, 2026.
Intesa Sanpaolo and UniCredit maintain the highest buffer at 1.25 percent, reflecting their significant systemic importance.
The systemic importance framework
The identification of Other Systemically Important Institutions (O-SIIs) in Italy follows Banca d'Italia's Circular No. 285/2013 and European Banking Authority (EBA) Guidelines.
This annual assessment considers four categories: size, importance for the Italian economy, complexity, and interconnectedness with the financial system.
An overall systemic importance score exceeding 300 basis points determines O-SII status.
Monte dei Paschi di Siena and BPER Banca, in their new configurations, recorded scores of 680 and 485 basis points respectively, exceeding this threshold.
The O-SII buffer calibration uses an eight-bucket scheme, linking higher systemic importance to increased capital buffers.
Consolidation shapes systemic risk
This update reflects the dynamic landscape of Italian banking, with significant consolidation driving re-evaluations of systemic importance.
While a routine exercise, the staggered implementation underscores the complexity of integrating major M&A activities into regulatory frameworks.
It provides crucial transparency on capital requirements for key players, reinforcing financial stability.