Belgian regulator urges (re)insurers to suspend dividend payments until at least 1 January 2021

Written by Adam Cadle

03/08/2020

The National Bank of Belgium is urging Belgian credit institutions and (re)insurers to suspend their dividend payments until at least 1 January 2021.

The regulator is also encouraging them to maintain a cautious attitude towards variable remuneration and profit sharing.

“Given the persistent uncertainty regarding both the short and long term impact of COVID-19 and the perpetuation of significant downside risks, maintaining a resilient financial sector – through sufficient capital reserves – remains of great importance,” it said.

“These reserves should – if necessary – be first and foremost used to absorb losses and ensure the continuity of financial intermediation, and more specifically of lending and insurance activities in favour of the real economy.”

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