Slovenia Suspends Payment of Dividends of Banks and Savings Associations

The Central Bank of Slovenia has suspended for one year the payment of dividends of banks and savings associations, with the aim of securing enough capital for the system to be able to withstand potential losses and issue corporate and retail loans.

Announcing this measure, the Bank of Slovenia says that, if there's a need for it, this macroprudential measure will be adapted to the situation, STA reports.

The measure “pertains to the profit realized by banks and savings associations in 2019 and 2020 and the retained profit and reserved funds from the previous years”. The measure is expected to be in effect for a year, the central bank says in a press release.

In case of substantial increase or decrease in risk, the measure will be adjusted accordingly. The first estimate of the effects of this measure is planned for late 2020.

Central Bank of Slovenia

dividends

payment of dividends

suspension of dividend payment