Norway Says Banks Can Resume Normal Shareholder Payouts Next Month
September 07 2021 - 9:45AM
Dow Jones News
By Dominic Chopping
Norway's Ministry of Finance said Tuesday that as uncertainty
surrounding the economic outlook has abated, banks in the country
can resume shareholder payouts as they normally would, from next
month.
Although not an outright ban, the ministry said last year that
it expected Norwegian financial firms to wait with shareholder
distributions due to uncertainty amid the outbreak of Covid-19.
Updating guidance earlier this year, it said that banks should
remain reluctant to distribute dividends until after Sept. 30, in
line with a recommendation made by the European Systemic Risk
Board.
"The economic outlook is significantly improved," Norway's
Finance Minister Jan Tore Sanner said.
"Going forward, the banks should therefore be able to distribute
profits in accordance with the regular legal framework."
The European Systemic Risk Board will soon decide whether to
adopt a new recommendation on banks' profit distributions after
Sept. 30. If and when it is adopted, the ministry said it will
assess the possible new ESRB recommendation.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
September 07, 2021 09:30 ET (13:30 GMT)
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