Permission from DNB required for dividend payments

News
Date 28 January 2013

Banks must submit proposed dividend payments to DNB.

Divident uitkering

DNB considers consolidation of capital in the banking sector to be of vital importance, partly due to the stricter requirements imposed by Basel III. For this reason, banks must submit proposed dividend payments to DNB if such payments are likely to reduce their capital. Please note that this can also apply to profit distribution in the current book year, as assessed by the auditor. Banks may only make such dividend payments if they have been approved by DNB. If the supervisor feels that a bank has sufficient scope to pay a dividend, it will issue a declaration of no objection.

Submitting a request
Open Book Supervision contains detailed instructions on how to submit a request for a declaration of no objection to a dividend payment.

 

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