Press release | Date: 07/09/2021 | Ministry of Finance| No: 66/2021
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 30 September.
“The economic outlook is significantly improved. Going forward, the banks should therefore be able to distribute profits in accordance with the regular legal framework“, says Minister of Finance Jan Tore Sanner.
In a letter sent to the Ministry of Finance on 3 September 2021, Finanstilsynet describes how the uncertainty about the economic outlook in Norway and internationally has decreased considerably since January. On 20 January, the Ministry issued an expectation that Norwegian banks should apply caution in distributing profits until 30 September 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 30 September. The Ministry of Finance shares this view.
Finanstilsynet also said that the European Systemic Risk Board will (ESRB) soon decide whether to adopt a new recommendation on banks’ profit distributions after 30 September. If and when it is adopted, the Ministry will assess the possible new ESRB recommendation.