Financial Institutions and Markets

Following the several recommendations issued by banking regulators pertaining to dividend distribution by supervised entities during the COVID-19 pandemic period – in which we highlight Circular Letter CC/2020/00000072 – Bank of Portugal has issued on 24th September 2021 a declaration informing that the recommendation pertaining to the non-distribution of dividends will not be extender from 30th September 2021 onwards.

Bank of Portugal has taken this position in line with the approach taken by either the European Central Bank in relation to significant banks under its direct supervision, within the Single Supervisory Mechanism, as well as by the European Systemic Risk Board, which have already indicated the recommendations for the non-distribution of dividends would cease by 30th September 2021.

Links relevantes:

• Declaration by the Bank of Portugal
• Declaration by the European Central Bank
• Declaration by the European Systemic Risk Board