NBM RECOMMENDS TO BANKS TO REFRAIN FROM PAYING DIVIDENDS UNTIL OCTOBER

At an extraordinary sitting, the National Bank of Moldova Executive Committee decided to recommend Moldovan banks to refrain from payment of 2019 dividends to shareholders until September 30.

According to the NBM press service, such a decision is explained for mitigating the consequences, caused by the Covid-19 pandemic for ensuring sufficient capitalization and stability of banks.

The NBM adopted measures on mitigating the capital buffer requirements. The regulator allows banks to temporarily (until a later date) use the earlier created capital conservation buffer.

The conserved buffer may be used for covering any worsening of the credit portfolio quality and support of financing to businesses and population.

“Banks are recommended to continue promoting proper policy for recognition and covering the non-working risks, implementing a wise planning of the capital and liquidity, as well as reliable administration of risks”, the press release says.

The NBM says that its measures correspond with a better international practice and are equivalent with the decisions, which were recently adopted by most central banks in the European Union and the region’s countries.