Norway's FSA proposes restrictions on quarterly dividends for financial institutions

Morrow Bank ASA

11/10/2018 07:08

OSLO, Oct 11 (Reuters) - Norway should not allow banks and
insurers to make quarterly dividend payments, which some
financial institutions have sought to do, the country's
Financial Supervisory Authority (FSA) said in a recommendation
to the Finance Ministry late on Wednesday.
    Banks and insurers that meet certain capital requirements
are allowed to pay dividends annually.
    "Banks could see significant increases of losses during
times of weak economic development," the FSA said, adding that
this should be a key argument for allowing full-year payments
only.
    It added that for insurance companies, quarterly dividends
could weaken the ability to take necessary solidity precautions.
    The FSA may however still authorise buy-backs of shares.

 (Reporting by Camilla Knudsen, editing by Terje Solsvik)
 ((camilla.knudsen@thomsonreuters.com; +47 2331 6595; Reuters
Messaging: camilla.knudsen.thomsonreuters.com@reuters.net))