NBB Macroprudential Communication on dividend distributions

The NBB urges all Belgian credit institutions and insurance and reinsurance undertakings active in the Belgian financial market to refrain from dividend distributions, share buy-backs, and variable remuneration obligations until at least 1 January 2021. This macroprudential endorsement requires the comprehensive application of existing microprudential recommendations by the ECB and the NBB to all relevant entities, including subsidiaries of international groups. The directive aims to preserve the resilience of the financial sector and ensure the continuity of credit provision to the real economy amid uncertainties related to the COVID-19 crisis.

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Following earlier communications by the ECB and the European supervisory authorities (ESAs) requesting financial institutions to refrain from dividend distributions (and other similar actions), the European Systemic Risk Board (ESRB) published on 27 May 2020 an additional recommendation to relevant authorities (ESRB/2020/7).

In this recommendation the ESRB urges the relevant authorities, including national macroprudential authorities, to request the financial institutions under their supervisory remit to refrain from undertaking any of the following actions at least until 1 January 2021:

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Lineage: In force

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Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works