Bond ICREA Bank 0% ( XS1762912571 ) in EUR

Issuer ICREA Bank
Market price 100 %  ▼ 
Country  Italy
ISIN code  XS1762912571 ( in EUR )
Interest rate 0%
Maturity 01/02/2021 - Bond has expired



Prospectus brochure of the bond Iccrea Banca XS1762912571 in EUR 0%, expired


Minimal amount 100 000 EUR
Total amount 400 000 000 EUR
Detailed description ICCREA Banca is a leading Italian banking group focused on providing financial services to individuals and businesses, particularly in the cooperative sector.

The Bond issued by ICREA Bank ( Italy ) , in EUR, with the ISIN code XS1762912571, pays a coupon of 0% per year.
The coupons are paid 4 times per year and the Bond maturity is 01/02/2021










ICCREA Banca S.p.A.
(incorporated with limited liability as a società per azioni under the laws of the Republic of Italy)
3,000,000,000
Euro Medium Term Note Programme
Application has been made to the Commission de Surveillance du Secteur Financier (the "CSSF") in its capacity as competent authority in
Luxembourg to approve this document as a base prospectus under the loi relative aux prospectus pour valeurs mobilières dated 10 July 2005
which implements Directive 2003/71/EC, and amendments thereto (including Directive 2010/73/EU, to the extent implemented in a Member
State of the European Economic Area) (the "Prospectus Directive") in Luxembourg. Application has been made by ICCREA Banca S.p.A.
(the "Issuer") for notes ("Notes") issued under the 3,000,000,000 Euro Medium Term Note Programme (the "Programme") described in
this Base Prospectus during the period of twelve months after the date hereof to be listed on the official list and admitted to trading on the
regulated market of the Luxembourg Stock Exchange. The Luxembourg Stock Exchange's regulated market is a regulated market for the
purposes of the Markets in Financial Instruments Directive 2004/39/EC. The Programme also allows for Notes to be unlisted or to be admitted
to listing, trading and/or quotation by such other or further listing authorities, stock exchanges and/or quotation systems as may be agreed with
the Issuer.
As more fully set out in "Taxation", payments of interest, premium and other income on Notes qualifying as bonds (obbligazioni) or securities
similar to bonds (titoli similari alle obbligazioni) are subject in principle to a substitutive tax (referred to as the imposta sostitutiva), in certain
circumstances. Imposta sostitutiva is levied at the rate of 26 per cent. In order to obtain exemption from the imposta sostitutiva in respect of
payments of interest, premium or other income relating to the Notes, each Noteholder not resident in the Republic of Italy is generally required
to certify, inter alia, that such Noteholder is eligible for the exemption, as more fully set out in "Taxation".
Pursuant to the Programme, the Issuer may from time to time issue Notes in bearer form denominated in any currency agreed between the
Issuer and one or more of the dealers named on page 16 and any additional dealer appointed under the Programme from time to time (each a
"Dealer" and together the "Dealers"). Notes admitted to trading on a regulated market within the European Economic Area or offered to the
public in a Member State of the European Economic Area in circumstances which require the publication of a prospectus under the Prospectus
Directive will not have a denomination of less than 100,000 (or its equivalent in other currencies calculated as described herein). The
aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed 3,000,000,000 (or its equivalent
in other currencies calculated as described herein). The CSSF gives no undertaking as to the economic or financial opportuneness of the
transaction or the quality and solvency of the Issuer in line with the provisions of article 7 (7) of the Luxembourg Prospectus Law.
Investing in Notes issued under the Programme involves certain risks. The risk factors that may affect the abilities of the Issuer to fulfil
its obligations under the Notes are discussed under "Risk Factors" below.
Arranger
MEDIOBANCA ­ Banca di Credito Finanziario S.p.A.
Dealers
Banca IMI
Barclays
BNP PARIBAS
Citigroup
Commerzbank
Crédit Agricole CIB
Credit Suisse
DZ BANK AG
HSBC
ICCREA Banca S.p.A.
MEDIOBANCA ­ Banca di Credito Finanziario S.p.A.
MPS Capital Services
Natixis
NatWest Markets
Nomura
Rabobank
Raiffeisen Bank International AG
Société Générale Corporate & Investment Banking
UniCredit Bank

The date of this Base Prospectus 14 December 2017
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IMPORTANT NOTICES
This document constitutes a base prospectus for the purposes of Article 5.4 of the Prospectus
Directive.
The Issuer accepts responsibility for the information contained in this document and, to the
best of the knowledge and belief of the Issuer (which has taken all reasonable care to ensure
that such is the case), the information contained in this document is in accordance with the facts
and does not omit anything likely to affect the import of such information. The Issuer has
confirmed to the Dealers that this Base Prospectus (including for this purpose, each relevant
Final Terms) contains all information which the Issuer believes to be (in the context of the
Programme and the issue, offering and sale of the Notes) material; that such information is true
and accurate in all material respects and is not misleading in any material respect; that any
opinions, predictions, expectations or intentions expressed herein are honestly held or made
and are not misleading in any material respect; that there are no other facts in relation to the
information contained or incorporated by reference in this Base Prospectus the omission of
which would, in the context of the Programme and the issue, offering and sale of the Notes,
make any statement therein, or opinions or intentions expressed therein misleading in any
material respect; and that all reasonable enquiries have been made to verify the foregoing.
This Base Prospectus should be read and construed together with any supplements hereto and
with any other documents incorporated by reference herein and, in relation to any Tranche (as
defined herein) of Notes, should be read and construed together with the relevant Final Terms
(as defined herein).
No person has been authorised to give any information or to make any representation not
contained in or not consistent with this Base Prospectus or any other document entered into in
relation to the Programme or any information supplied by the Issuer or such other information
as is in the public domain and, if given or made, such information or representation should not
be relied upon as having been authorised by the Issuer or any Dealer.
No representation or warranty is made or implied by the Dealers or any of their respective
affiliates, and neither the Dealers nor any of their respective affiliates makes any representation
or warranty or accepts any responsibility as to the accuracy or completeness of the information
contained in this Base Prospectus. Neither the delivery of this Base Prospectus or any Final
Terms nor the offering, sale or delivery of any Note shall, in any circumstances, create any
implication that the information contained in this Base Prospectus is true subsequent to the date
hereof or the date upon which this Base Prospectus has been most recently supplemented or
that there has been no adverse change, or any event reasonably likely to involve any adverse
change, in the condition (financial or otherwise), business, prospects or general affairs of the
Issuer or any of its subsidiaries since the date thereof or, if later, the date upon which this Base
Prospectus has been most recently supplemented or that any other information supplied in
connection with the Programme is correct at any time subsequent to the date on which it is
supplied or, if different, the date indicated in the document containing the same.
This Base Prospectus may only be used for the purposes for which it has been published. The
distribution of this Base Prospectus and any Final Terms and the offering, sale and delivery of
the Notes in certain jurisdictions may be restricted by law. Persons into whose possession this
Base Prospectus or any Final Terms comes are required by the Issuer and the Dealers to inform
themselves about and to observe any such restrictions. For a description of certain restrictions
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on offers, sales and deliveries of Notes and on the distribution of this Base Prospectus or any
Final Terms and other offering material relating to the Notes, see "Subscription and Sale".
In particular, Notes have not been and will not be registered under the United States Securities
Act of 1933 (as amended) (the "Securities Act") and are subject to U.S. tax law requirements.
Subject to certain exceptions, Notes may not be offered, sold or delivered within the United
States or to U.S. persons.
Neither this Base Prospectus nor any Final Terms constitutes an offer or an invitation to
subscribe for or purchase any Notes and none of them should be considered as a
recommendation by the Issuer, the Dealers or any of them that any recipient of this Base
Prospectus or any Final Terms should subscribe for or purchase any Notes. Each recipient of
this Base Prospectus or any Final Terms shall be taken to have made its own investigation and
appraisal of the condition (financial or otherwise), business, prospects or general affairs of the
Issuer and its subsidiaries.
IMPORTANT ­ EEA RETAIL INVESTORS If the Final Terms (or Drawdown Prospectus,
as the case may be) in respect of any Notes includes a legend entitled "Prohibition of Sales to
EEA Retail Investors", the Notes are not intended, from 1 January 2018, to be offered, sold or
otherwise made available to and, with effect from such date, should not be offered, sold or
otherwise made available to any retail investor in the European Economic Area ("EEA"). For
these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as
defined in point (11) of Article 4(1) of Directive 2014/65/EU ("MiFID II"); (ii) a customer
within the meaning of Directive 2002/92/EC ("IMD"), where that customer would not qualify
as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a
qualified investor as defined in the Prospectus Directive. Consequently no key information
document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") for offering
or selling the Notes or otherwise making them available to retail investors in the EEA has been
prepared and therefore offering or selling the Notes or otherwise making them available to any
retail investor in the EEA may be unlawful under the PRIIPs Regulation.
MIFID II PRODUCT GOVERNANCE / TARGET MARKET The Final Terms in respect
of any Notes may include a legend entitled "MiFID II Product Governance" which will outline
the target market assessment in respect of the Notes and which channels for distribution of the
Notes are appropriate. Any person subsequently offering, selling or recommending such Notes
(a "distributor") should take into consideration the target market assessment; however, a
distributor subject to MiFID II is responsible for undertaking its own target market assessment
in respect of the Notes (by either adopting or refining the target market assessment) and
determining appropriate distribution channels. A determination will be made at the time of
issue about whether, for the purpose of the product governance rules under EU Delegated
Directive 2017/593 (the "MiFID Product Governance Rules"), any Dealer subscribing for a
Tranche of Notes is a manufacturer in respect of that Tranche, but otherwise neither the
Arranger nor the Dealers nor any of their respective affiliates will be a manufacturer for the
purpose of the MIFID Product Governance Rules.
The maximum aggregate principal amount of Notes outstanding at any one time under the
Programme will not exceed 3,000,000,000 (and for this purpose, any Notes denominated in
another currency shall be translated into euro at the date of the agreement to issue such Notes,
calculated in accordance with the provisions of the Dealer Agreement (as defined under
"Subscription and Sale")). The maximum aggregate principal amount of Notes which may be
outstanding at any one time under the Programme may be increased from time to time, subject
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to compliance with the relevant provisions of the Dealer Agreement as defined under
"Subscription and Sale".
Notes issued pursuant to the Programme may be rated or unrated. Where a Tranche of Notes is
rated, its rating will not necessarily be the same as any rating applicable to the Programme.
Details of the rating, if any, attributable to a Tranche of Notes will be specified in the relevant
Final Terms. A rating is not a recommendation to buy, sell or hold securities and may be subject
to suspension, reduction or withdrawal at any time by the assigning rating agency. Whether or
not each credit rating applied for in relation to a relevant Tranche of Notes will be issued by a
credit rating agency established in the European Union and registered under Regulation (EU)
No. 1060/2009 as amended (the "CRA Regulation") will be disclosed in the relevant Final
Terms. In general, European regulated investors are restricted from using a rating for regulatory
purposes if such rating is not issued by a credit rating agency established in the European Union
and Registered under the CRA Regulation (or is endorsed and published or distributed by
subscription by such a credit rating agency in accordance with the Regulation) unless the rating
is provided by a credit rating agency operating in the European Union before 7 June 2010 which
has submitted an application for registration in accordance with the CRA Regulation.
In this Base Prospectus, unless otherwise specified or where the context requires otherwise:
references to a "Member State" are references to a Member State of the European Economic
Area (the "EEA"); references to a "Condition" are to the correspondingly numbered provision
set forth in "Terms and Conditions of the Notes"; references to "", "EUR" or "euro" are to
the currency introduced at the start of the third stage of European economic and monetary
union, and as defined in Article 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the
introduction of the euro, as amended; references to "U.S.$", "U.S. dollars" or "dollars" are to
the lawful currency for the time being of the United States; references to "£" and "Sterling"
are to the lawful currency for the time being of the United Kingdom; and references to
"billions" are to thousands of millions.
Certain figures included in this Base Prospectus have been subject to rounding adjustments;
accordingly, figures shown for the same category presented in different tables may vary slightly
and figures shown as totals in certain tables may not be an arithmetic aggregation of the figures
which precede them.
In connection with the issue of any Tranche of Notes under the Programme, the Dealer
or Dealers (if any) named as the Stabilising Manager(s) (or persons acting on behalf of
any Stabilising Manager(s)) in the applicable Final Terms may over-allot Notes or effect
transactions with a view to supporting the market price of the Notes at a level higher than
that which might otherwise prevail. However, stabilisation may not necessarily occur.
Any stabilisation action may begin on or after the date on which adequate public
disclosure of the terms of the offer of the relevant Tranche of Notes is made and, if begun,
may cease at any time, but it must end no later than the earlier of 30 days after the issue
date of the relevant Tranche of Notes and 60 days after the date of the allotment of the
relevant Tranche of Notes. Any stabilisation action or over-allotment must be conducted
by the relevant Stabilising Manager(s) (or person(s) acting on behalf of any Stabilising
Manager(s)) in accordance with all applicable laws and rules.
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MARKET INFORMATION AND STATISTICS
Unless otherwise indicated, information and statistics presented in this Base Prospectus
regarding the market share of the Issuer are either derived from, or are based upon, the Issuer's
analysis of data obtained from public sources. Although these sources are believed by the Issuer
to be reliable, the Issuer has not independently verified such information, but the Issuer takes
responsibility for the correct reproduction of such information.
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CONTENTS

Page
IMPORTANT NOTICES .......................................................................................................... 2
MARKET INFORMATION AND STATISTICS ..................................................................... 5
RISK FACTORS ....................................................................................................................... 7
GENERAL DESCRIPTION OF THE PROGRAMME .......................................................... 29
DOCUMENTS INCORPORATED BY REFERENCE .......................................................... 38
FURTHER PROSPECTUSES AND SUPPLEMENTS .......................................................... 41
FORMS OF THE NOTES ....................................................................................................... 42
TERMS AND CONDITIONS OF THE NOTES .................................................................... 46
FORM OF FINAL TERMS ..................................................................................................... 81
OVERVIEW OF PROVISIONS RELATING TO THE NOTES WHILE IN GLOBAL
FORM ............................................................................................................................ 101
DESCRIPTION OF THE ISSUER ........................................................................................ 105
TAXATION ........................................................................................................................... 132
SUBSCRIPTION AND SALE .............................................................................................. 139
GENERAL INFORMATION ................................................................................................ 144

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RISK FACTORS
The Issuer believes that the following factors may affect its ability to fulfil its obligations under
Notes issued under the Programme. These factors are contingencies which may or may not
occur and the Issuer is not in a position to express a view on the likelihood of any such
contingency occurring. Factors which the Issuer believes are material for the purpose of
assessing the market risks associated with Notes issued under the Programme are also
described below.
The Issuer believes that the factors described below represent the principal risks inherent in
investing in Notes issued under the Programme, but the inability of the Issuer to pay interest,
principal or other amounts on or in connection with any Notes may occur for other reasons
which may not be considered significant risks by the Issuer based on information currently
available to it or which it may not currently be able to anticipate.
Prospective investors should also read the detailed information set out elsewhere in this Base
Prospectus and reach their own views prior to making any investment decision.
Words and expressions defined in "Forms of the Notes" and "Terms and Conditions of the
Notes" or elsewhere in this Base Prospectus have the same meaning in this section. Prospective
investors should read the entire Base Prospectus.
Factors that may affect the Issuer's ability to fulfil its obligations under the Notes
General
An actual or perceived deterioration in the financial condition of the Issuer or its results of
operations could have a negative impact on the ability of the Issuer to comply with its
obligations under the Notes, and consequently could have an adverse effect which may harm
the price or value of an investment in the Notes.
The Issuer's financial performance is affected by the general economic conditions, in
particular in the Republic of Italy and Europe
Adverse changes or a general deterioration in the Italian, European or global economic
conditions, or arising from systemic risks in the financial systems, could affect the
recoverability and value of the Issuer's assets and require an increase in the Issuer's provision
for bad and doubtful loans and other provisions.
The Issuer is not a retail bank and its core institutional role is to provide key financial and credit
services to the network of Banche di Credito Cooperativo ("BCC").
The BCCs' asset quality is exposed to domestic economic weakness through the composition
of their loan portfolio, mainly to small enterprises and artisans. Sustained loan growth in the
past few years, coupled with high loan portfolio concentration in the real estate sector for some
BCCs, makes their credit risk vulnerable to the domestic economic environment.
The Issuer is subject to capital requirements that could limit its operations
The Issuer is subject to capital adequacy guidelines adopted by the Bank of Italy for a bank or
a bank holding company, which provide for a minimum ratio of total capital to risk adjusted
assets both on a consolidated basis and on a non-consolidated basis expressed as a percentage.
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At least half of the total capital must be maintained in the form of Tier I capital. The Issuer's
failure to maintain its ratios may result in administrative actions or sanctions against it which
may impact the Issuer's ability to fulfil its obligations under the Notes.
Market risk
The market risk involved in the Issuer's business activities lies in the risk of possible losses
arising from changes in the market due to fluctuating or changing interest rates, foreign
exchange rates, share prices and prices in general. This risk encompasses both trading book
and banking book positions. Positions of risk are the result either of business positions taken
for or in respect of customers, or of a deliberate assumption of such positions.
Global market conditions
Since the second half of 2007, disruption in the global credit markets has created increasingly
difficult conditions in the financial markets. These conditions have resulted in decreased
liquidity and greater volatility in global financial markets, and continue to affect the
functioning of financial markets and to impact the global economy.
Several governments, international and supranational organisations and monetary authorities
have recently put in place a number of actions to increase liquidity in financial markets, in
order to boost global GDP growth and mitigate the possibility of default by certain European
countries on their sovereign debt obligations. It remains difficult to predict the effect of these
measures on the economy and on the financial system. As a result, the Issuer's ability to access
the capital and financial markets and to refinance debt to meet the financial requirements of
the Issuer may be adversely impacted and costs of financing may significantly increase. This
could materially and adversely affect the business, results of operations and financial condition
of the Issuer, with a consequent adverse effect on the market value of the Notes and the Issuer's
ability to meet its obligations under the Notes.
Risks arising from the sovereign debt crisis
The Issuer is affected by disruptions and volatility in the global financial markets including, in
recent years, the sovereign debt crisis in the Eurozone. Credit quality has generally declined,
as reflected by downgrades suffered by several countries in the Euro-zone, including Italy,
since the beginning of the sovereign debt crisis in May 2010. The large sovereign debts and
fiscal deficits in European countries have raised concerns regarding the financial condition of
Euro-zone financial institutions and their exposure to such countries. These concerns may have
an impact on Euro-zone banks' funding.
In particular, the Issuer's credit ratings are potentially exposed to the risk of reductions in the
sovereign credit rating of Italy. On the basis of the methodologies used by rating agencies,
further downgrades of Italy's credit rating may have a potential knock-on effect on the credit
rating of Italian issuers such as the Issuer and make it more likely that the credit rating of Notes
issued under the Programme are downgraded.
Default risk
Deterioration in the financial condition of the Issuer may have a material adverse effect on the
Issuer resulting in the non-performance, in whole or in part, of the Issuer's obligations under
the Notes.
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The current crisis in the international finance markets and its unforeseeable global effects may
have a material adverse effect on the Issuer resulting in the non-performance, in whole or in
part, of the Issuer's obligations under the Notes.
Historical Information
The historical, financial and other information set out in the section headed "Iccrea Banca
S.p.A." represents the historical experience of the Issuer. There can be no assurance that the
future experience and performance of the Issuer will be similar to the past experience described
in this Base Prospectus.
Changes in regulatory framework and accounting policies
The Issuer is subject to extensive regulation and supervision by the Bank of Italy, CONSOB,
the European Central Bank (the "ECB") and the European System of Central Banks. Starting
from 3 November 2014, the Issuer is also subject to the supervision of the ECB which, pursuant
to rules establishing a single supervisory mechanism (the "Single Supervisory Mechanism"
or "SSM"), has the duty to, among other things, guarantee the uniform application of the rules
of the Euro currency area.
The banking laws to which the Issuer is subject govern the activities in which banks and
banking foundations (fondazioni bancarie) may engage and are designed to maintain the safety
and soundness of banks, and limit their exposure to risk. In addition, the Issuer must comply
with financial services laws that govern its marketing and selling practices. The regulatory
framework governing international financial markets is currently being amended in response
to the credit crisis, and new legislation and regulations are being introduced in Italy and the
European Union that will affect the Issuer including proposed regulatory initiatives that could
significantly alter the Issuer's capital requirements, as described below.
In the wake of the global financial crisis that began in 2008, the Basel Committee on Banking
Supervision (the "Basel Committee") approved, in the fourth quarter of 2010, revised global
regulatory standards (the "Basel III") on bank capital adequacy and liquidity, higher and better-
quality capital, better risk coverage, measures to promote the build-up of capital that can be
drawn down in periods of stress and the introduction of a leverage ratio as a backstop to the
risk-based requirement as well as two global liquidity standards. Basel III adopts a gradual
approach, with the requirements to be implemented over time, with full enforcement in 2019.
Minimum common equity tier 1 (the "CET1") will be increased from broadly 2% of risk-
weighted assets to 7.0%. The 7.0% includes a "capital conservation buffer" of 2.5% to ensure
that banks maintain a buffer of capital that can be used to absorb losses during periods of
financial and economic stress. An additional "countercyclical buffer requirement" of 0-2.5%
will be implemented according to national circumstances. The countercyclical buffer
requirement will apply in periods of excess lending growth in the economy and can vary for
each jurisdiction.
The Basel III agreements provide for the introduction of a Liquidity Coverage Ratio ("LCR"),
in order to establish and maintain a liquidity buffer which will permit the bank to survive for
30 days in the event of serious stress, and a Net Stable Funding Ratio ("NSFR"), with a time
period of more than one year, introduced to ensure that the assets and liabilities have a
sustainable expiry structure. In the case of LCR, within the CRR framework, the LCR
Delegated Act (Commission Delegated Regulation (EU) 2015/61 technically specifies the
calculation rules of the LCR and provides that it is to be phased in gradually, from 60%
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commencing on 1 October 2015 to 100% from 1 January 2018), In the case of NSFR, although
the proposal of the Basel Committee foresaw that the 100% level is to be met as of 1 January
2018 without any phase in, the CRR does not provide for the regulatory limit on structural
liquidity. On 17 December 2015, the European Banking Authority published its report
recommending the introduction of the NSFR in the EU in order to ensure stable funding
structures and outlining its impact assessment and proposed calibration.
The Basel III framework has been implemented in the EU through new banking regulations
adopted on 26 June 2013: Directive 2013/36/EU of the European Parliament and of the Council
of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms (the "CRD IV Directive") and Regulation (EU) No
575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential
requirements for credit institutions and investment firms (the "CRR"). Full implementation
began on 1 January 2014, with particular elements being phased in over a period of time (the
requirements will largely be fully effective by 2019 and some minor transitional provisions
provide for the phase-in until 2024) but it is possible that in practice implementation under
national laws may be delayed until after such date. Furthermore, on 14 March 2016 the ECB
adopted Regulation (EU) 2016/445 on the exercise of options and discretions. Depending on
the manner in which these options or discretions were so far exercised by the national
competent authorities and on the manner the SSM will exercise such options or discretions in
the future, additional or lower capital requirements may be required.
In November 2016, the European Commission announced the EU Banking Reform which
proposed a binding 3% Leverage Ratio and a binding detailed Net Stable Funding Ratio which
will require credit institutions and systemic investment firms to finance their long-term
activities (assets and off-balance sheet items) with stable sources of funding (liabilities) in order
to increase banks' resilience to funding constraints. In particular, under the proposal, the
binding 3% Leverage Ratio is added to the own funds requirements in the CRR which
institutions must meet in addition to/in parallel with their risk-based requirements, and will
apply to all credit institutions and investment firms that fall under the scope of the CRR, subject
to selected adjustments.
In addition, it should be noted that, on 13 April 2017, the ECB published a guideline and a
recommendation addressed to national competent authorities ("NCAs") concerning the
exercise of options and national discretions available in European Union law that affect banks
which are directly supervised by NCAs (i.e. less significant institutions). Both documents are
intended to further harmonise the way banks are supervised by NCAs in the 19 countries to
which the SSM (as defined below) applies. The aim is to ensure a level playing field and the
smooth functioning of the euro area banking system as a whole.
The Bank of Italy published new supervisory regulations on banks in December 2013 (Circular
No. 285, dated 17 December 2013, the "Prudential Regulations for Banks"), which came
into force on 1 January 2014, implementing CRD IV and setting out additional local prudential
rules concerning matters not harmonised at an EU level. As of 1 January 2014, Italian banks
are required to comply with a minimum CET1 capital ratio of 4.5%, Tier I Capital ratio of 6%
and Total Capital Ratio of 8%. These minimum ratios are complemented by the following
capital buffers, to be met with CET1 capital:

Capital conservation buffer: is set at 2.5.% of risk weighted assets and applies from 1
January 2014 (pursuant to Part I, Title II, Chapter I, Section II of Prudential Regulations
for Banks);
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