Prospectus - Notowania

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RISK FACTORS
effects on the balance sheet, income statement and/or financial situation of the
UniCredit Group.
For further information, reference should be made to the First Section, Chapter 6,
Paragraphs 6.10 and 6.11.
4.2.2 Risks associated with the competition in the banking and financial sector
The Issuer and the companies belonging to the UniCredit Group are subject to risks
deriving from the characteristic competition in the respective sectors of activity.
The national and international banking and financial services market is extremely
competitive and is currently undergoing a process of considerable aggregation by
means of mergers and buy-outs which involve large groups, thereby imposing
increasingly broader economies of scale.
The markets which the UniCredit Group operates on, and in particular those of the
CEE countries, are characterized by growing competition and therefore the UniCredit
Group might not be able to maintain or increase the activity volumes and the
profitability levels reported in the past, with consequent detrimental effects on the
balance sheet, income statement and/or financial situation of said Group.
For further information, reference should be made to the First Section, Chapter 6.
4.2.3 Risks associated with the evolution of the regulation of the banking and financial
sector
The UniCredit Group is subject to complex regulation and supervision by the Bank of
Italy, Consob, the Supervisory Body for Private Insurance (ISVAP) with regard to the
bancassurance activities, BaFin, PFSA, FMA, the European Central Bank and the
European Central Bank System. The legislation applicable to banks which the
UniCredit Group is subject to disciplines the sectors in which the banks and the
foundations can operate with the aim of maintaining the stability and solidity of the
banks, thereby limiting exposure to risk. The UniCredit Group is also subject to the
legislation applicable to financial services which, among other things, disciplines the
activities for the sale and placement of financial instruments and marketing activities.
Specifically, the Issuer and the Group’s banks are obliged to observe the capital
adequacy requirements envisaged by the law in each country these companies operate
in.
Any change to the methods for applying said legislation, or the implementation of the
Basel II legislation on the capital requirements of financial institutions – including
therein the capital adequacy requirements – could influence the activities, the financial
position, the cash flow and the operating results of the UniCredit Group. Since certain
laws and legislation which concern the UniCredit Group have been approved recently,
the related formalities applying to the transactions carried out by the financial
institutions are still being developed. Furthermore, also following the recent crisis
which hit the financial markets, intense debate is underway with regard to the