UniCredit Bank AG

Should the HVB Group or one of its subsidiaries not comply fully with the regulatory demands of the
supervisory authorities, this could lead to sanctioning measures, in particular by BaFin. At worst, the business
capabilities of the HVB Group and its subsidiaries could be restricted as a result.
Uncertainty about macro-economic developments and risks from increasingly stringent regulatory
requirements
The international discussion about the future regulatory environment for banks has many facets and the outcome
is hard to assess at present in terms of complexity and cumulative effect. The regulatory environment will be
tightened up across the board as a consequence of the financial crisis. It is possible, for instance, that the required
core capital ratio will be raised and further regulatory ratios introduced. Besides increasing funding costs, the
cost of implementing regulatory requirements and for updating IT systems accordingly will also rise in this
context. At worst, this could weaken HVB Group's strong capital base.
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