UBI Banca is taking steps to ensure its core capital level remains above the new capital requirement, in line with the upcoming European Central Bank's (ECB) capital adequacy rules. At a meeting scheduled for 10th October, the bank will put forward a plan to limit the amount of money that can be paid to shareholders who will oppose its conversion into a joint-stock company and will ask to cash out. The bank's board has also decided not to pay dividends until it reaches an agreement on how much equity should be returned by the end of 2018.
UBI Banca is taking steps to ensure its core capital level remains above the new capital requirement, in line with the upcoming European Central Bank's (ECB) capital adequacy rules. At a meeting scheduled for 10th October, the bank will put forward a plan to limit the amount of money that can be paid to shareholders who will oppose its conversion into a joint-stock company and will ask to cash out. This move is in line with the Italian's government's financial reforms, which is encouraging its banks to convert into joint-stock companies, in the hopes of encouraging a wave of mergers.