UniCredit's board has approved the sale of a stake in financial services company FinecoBank as part of the bank’s incoming chief executive’s focus on boosting capital.

In a statement, UniCredit said it would sell a stake of up to 10% in FinecoBank's existing shares to certain institutional investors via an accelerated bookbuilding process. The placement will start "immediately." UniCredit, Italy's largest bank by assets, said it currently holds about 65% of FinecoBank and aims to maintain a majority stake.