The European Central Bank ("ECB"), European Banking
Authority ("EBA") and the Malta Financial Services
Authority ("MFSA") have addressed certain matters
of interest to banks, financial institutions and consumers
concerning the economic impact of COVID-19 on the EU banking
sector. Key regulatory updates have been highlighted
below.
This is piece forms part of a series
of COVID-19 updates published by our firm
in response to developments around the pandemic with a special
emphasis on the banking sector. For more on this series,
please see here
.
1. European Central Bank
Dividend distribution policies – ECB publishes
Recommendation in response to the COVID-19 pandemic
The ECB has published a Recommendation, dated 27 March 2020, on
credit institutions' dividend distribution policies in the
light of COVID-19 pandemic and economic shock. As such, the ECB has
recommended that the conservation of capital resources by credit
institutions be prioritised over
