Bank of Italy highlights systemic risk links beyond EU borders
The Bank of Italy announced on Friday that it has designated the United States, United Kingdom, Switzerland, and Russia as key non-EU countries where Italian banks have significant financial exposure. The move comes under European rules aimed at monitoring systemic risks tied to cross-border banking activity.
Using end-of-2024 data, the central bank assessed Italian lenders’ country-level exposures to determine which nations posed potential systemic concerns. The analysis considered each country’s relative weight in the overall foreign exposure of the domestic banking system.
Italy’s largest banks, including Intesa Sanpaolo and UniCredit, maintain operations in Russia despite heightened geopolitical tensions. Intesa serves only corporate clients in the country, while UniCredit owns a full retail banking unit there.
UniCredit also disclosed an increase in its holdings of Russian government bonds through its Russian subsidiary. According to an updated investor document linked to its acquisition bid for Banco BPM, the bond holdings rose to 754 million euros ($888 million) in Q1 2025, up from 574 million euros at the end of 2024. A spokesperson attributed the increase to the revaluation of the Russian rouble.
The inclusion of Russia in the list underscores ongoing financial ties, even as European institutions remain cautious amid sanctions and political uncertainty. Meanwhile, the presence of Western economies such as the U.S., U.K., and Switzerland reflects the depth of Italian banks’ exposure to key global financial systems.