KNF against dividend payouts by some banks

The financial watchdog KNF will send out a recommendation to banks which eagerly granted CHF denominated mortgage loans asking them not to pay dividends for the last year.

Maciej Krzysztoszek from KNF explains that these loans have put the banks at a higher risk, therefore they should increase their savings now. The recommendation should not be seen as a form of punishment, but rather as a way of increasing the sustainability of the banks, he added.

KNF doesn’t indicate specifically which banks should withhold from paying dividends, but Krzysztoszek said that the recommendation is targeted at the banks, which participated in a debate on solving the problem of CHF denominated mortgage loans.

Pin It