ECB Backs UniCredit Buyback in Sign of Confidence for Banks (1)

The European Central Bank approved UniCredit SpA’s €3.34 billion ($3.6 billion) share buyback, in a sign that regulators aren’t inclined to curb payout policies because of recent banking turbulence.

The shares rose as much as 5.5% after the news, which removed uncertainty in the market after the collapse of several US banks and the rescue of Credit Suisse Group AG earlier this month raised questions whether regulators would take a tougher view of shareholder payouts. Andrea Enria, the ECB’s top banking oversight official, said last week that he wasn’t considering such restrictions.

“The ECB greenlight suggests that there is ...