UniCredit-Commerz merger could spawn sixth-largest EU G-Sib

Analysis of banks’ risk indicators suggest combined entity could have larger systemic footprint than ING and BPCE, returning Italian bank into too-big-to-fail club

A merger between UniCredit and Commerzbank could create a lender with a larger systemic risk footprint than ING Bank or Groupe BPCE, Risk Quantum analysis suggests.

Based on a simple sum of the global systemically important bank (G-Sib) risk indicators for the two lenders at the end of 2023, a combined entity would comfortably rank as the sixth-largest G-Sib in the European Union, likely attracting a 1% surcharge to its Common Equity Tier 1 (CET1) capital buffer, as UniCredit did until last year