DNB supports ESRB recommendation on capital distributions by insurers

Press release
Date 18 December 2020

On 18 December 2020 the European Systemic Risk Board (ESRB) extended its recommendation on restricting dividends paid by financial institutions during the COVID-19 pandemic until 30 September 2021.

De Nederlandsche Bank (DNB) continues to support the ESRB's recommendation. Financial institutions must have sufficient capital to mitigate potential systemic risk. The call on financial institutions remains expressly linked to the COVID-19 crisis.

As regards insurers, we will continue to assess their dividend proposals critically, as we have been doing since July 2020. Insurers will in any case need to make a thorough, forward-looking analysis of how their capital policy relates to the COVID-19 crisis, the sustained low-interest rate environment, the supervisory framework and the ESRB recommendation. They are asked to exercise restraint and prudence.

More information:  ESRB Recommendation ESRB/2020/7 on restriction of distributions during the COVID-19 pandemic

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For more information, please contact Tobias Oudejans (tel. +31 20 524 3100,  +31 6524 96 961).