SWE FI Banks Should Stop Dividends

On Mar. 24, SWE FI issued expectations of banks and credit firms.

  • SWE FI stated it expects banks and credit market companies to stop dividends.
  • Outlook for Swedish economy deteriorating rapidly, important to safeguard a stable supply of credit to households and companies and maintain good resilience in system.
  • Under current circumstances, FI expects these companies to refrain from distributing funds to shareholders until the great uncertainty about economic situation has cleared.
  • FI sent letters to all banks and credit market companies under FI's supervision.
  • The letter sent with the request that the boards change their dividend proposals immediately and that the spring general meetings decide not to pay dividends.
  • Important banks act responsibly, strengthen their resilience in this critical situation.

Regulators SWE FI
Entity Types Bank; CU; IA; MSB
Reference PR, 3/24/2020; COVID-19
Functions Compliance; Financial; Legal; Treasury
Countries Sweden
Products Banking; Equity; Loan; Securities
Regions EMEA
Rule Type Guidance
Rule Date 3/24/2020
Effective Date 3/24/2020
Rule Id 74451
Linked to N/A
Reg. Last Update 3/24/2020
Report Section EU

Last substantive update on 03/25/2020