Dáil Éireann Debate, Tuesday - 8 September 2020
301. Deputy Pearse Doherty asked the Minister for Finance the number of banks that have communicated to the Central Bank an intention to pay dividends in 2020; the actions of the Central Bank in response in each case; and if he will make a statement on the matter. [22205/20]
View answer303. Deputy Pearse Doherty asked the Minister for Finance the number of banks that have communicated to the Central Bank an intention to pay bonuses in 2020; the actions of the Central Bank in response in each case; and if he will make a statement on the matter. [22207/20]
View answerI propose to take Questions Nos. 301 and 303 together.
I am advised by the Central Bank that it is not in a position to disclose information about applications and requests made by individual firms in a supervisory capacity.
In line with the recommendation of the European Central Bank of 27 July 2020 on dividend distributions during the COVID-19 pandemic the Central Bank expects that credit institutions should not pay dividends for the financial years 2019 and 2020 until at least 1 January 2021 and should refrain from share buybacks aimed at remunerating shareholders.
The Central Bank expects that credit institutions adopt a prudent, forward-looking stance when deciding on their remuneration policies, in line with communications from the ECB to significant institutions, the EBA statement on dividends distribution, share buybacks and variable remuneration of 31 March 2020 and the recommendation of the European Systemic Risk Board of 27 May 2020 on restriction of distributions during the COVID-19 pandemic.
