In recent days, the Chairman of the Polish Financial Supervision Authority (“KNF”) has appealed to the banks and insurance companies not to pay out dividends and to retain all the profit generated in previous years, regardless of any actions already taken in this respect. In the opinion of the KNF Chairman it is necessary in order to safely continue to conduct core business activities and to respond effectively to the threats. The appeal of the KNF Chairman modifies the KNF positions issued in December 2019 regarding the dividend policy of some of the financial institutions in 2020 (these positions are presented here),
At the same time, the KNF Chairman indicated that all activities of the institutions supervised by the KNF which are outside the scope of their current business activity, in particular those which may weaken the capital base, should be consulted with the KNF before they are undertaken.
For further information please contact CMS experts: Ewa Świderska and Sylwia Raszplewicz-Czyżewska.