Regulatory Alerts2020-12-24
Added · Updated
Circular to Credit Institutions on the Restriction on Dividend Distributions or Share Buy-Backs and Variable Remuneration
The Malta Financial Services Authority issued this circular on December 24, 2020, to impose restrictions on dividend distributions, share buy-backs, and variable remuneration for credit institutions. The regulatory measure aims to enhance the financial resilience of these institutions by limiting capital outflows and preserving liquidity during critical periods. This directive serves as a supervisory tool to ensure that credit institutions maintain adequate capital buffers to absorb potential losses and support financial stability.
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