The ECB has indicated to UniCredit that it's considering raising the firm's so-called Pillar 2 requirement, which currently stands at 1.75%, the report said, citing sources.

UniCredit and the ECB declined to comment.

The Bloomberg report also said that the central bank's annual risk review should be finalised as soon as next week and added that no formal communication on the capital requirement decision had been relayed to UniCredit.

(Reporting by Aarati Krishna in Bengaluru; Editing by Mark Potter)