DNB supports ESRB recommendation on capital distributions by invest-ment firms and investment funds

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 to 30 September 2021.

De Nederlandsche Bank (DNB) supports the aim of this recommendation and asks investment firms and investment funds to take account of the current crisis, the outlook and possible other scenarios that could affect their profitability, and financial buffers when considering dividend payments, share buybacks and variable remuneration payments. We ask them to reconsider the strict necessity of such actions. This could prevent the need for future remedial action.

We expect investment firms and investment funds to keep a close watch over their financial buffers in these uncertain times. If they detect any developments that could result in prudential deficits in the short term, they must report them to us without delay. We will assess individual reports and consult with the relevant institution on any follow-up and remedial action.

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).