ROME—The chief executive of UniCredit SpA, Italy's largest bank, has agreed to step down, clearing the way for the board to begin a search for his successor.

UniCredit said CEO Federico Ghizzoni will step down once a new chief executive is found, to ensure a smooth transition.

Speculation about the future of Mr. Ghizzoni, who became chief executive in 2010, has been mounting for months, as investors pummeled the bank's stock, and major shareholders grew increasingly convinced that new leadership was needed to restore confidence in the financial group.

Write to Deborah Ball at deborah.ball@wsj.com

(END) Dow Jones Newswires

May 24, 2016 15:15 ET (19:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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