As the uncertainty about the economic outlook has been reduced, Norwegian banks may distribute profits in accordance with the regular framework for profit distribution after September 30.
“The economic outlook is significantly improved. Going forward, the banks should therefore be able to distribute profits in accordance with the regular legal framework “, Minister of Finance Jan Tore Sanner announced.
In a letter sent to the Ministry of Finance on September 3, 2021, Finanstilsynet describes how the uncertainty about the economic outlook in Norway and internationally has decreased considerably since January.
On January 20, the Ministry issued an expectation that Norwegian banks should apply caution in distributing profits until September 30 this year.
Based on the current economic outlook, Finanstilsynet no longer sees the need to make the same demands to the profit distribution of banks after September 30. The Ministry of Finance shares this view.
Finanstilsynet also said that the European Systemic Risk Board would (ESRB) soon decide whether to adopt a new recommendation on banks’ profit distributions after September 30. If and when it is adopted, the Ministry will assess the possible new ESRB recommendation.
Source: Ministry of Finance / #Norway Today / #NorwayTodayFinance
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