On 18 December 2020, the European Systemic Risk Board (ESRB) issued a new recommendation to relevant national authorities to request financial institutions to refrain from dividend distributions, share buy-backs and variable remuneration. The recommendation applies until 30 September 2021, and amends the previous recommendation expiring at the end of 2020. The Systemic Risk Council endorses the ESRB recommendation and encour-ages Danish institutions to restrict pay-outs that erode their own funds.
14 December 2020
The risk outlook continues to be influenced by covid-19 and the measures introduced to curb the spread of infection in Denmark and abroad. In light of current developments, the Council recommends that the rate of the countercyclical capital buffer should remain unchanged at 0 per cent. The Council does not expect to recommend an increase of the buffer rate until the middle of 2021 at the earliest.