The spread of the coronavirus has created immediate challenges for society and caused economic disruptions throughout Sweden and the global economy. The forecasts for the Swedish economy are rapidly deteriorating. Therefore, it is important the we safeguard a stable supply of credit to households and firms and maintain good resilience in the system. Banks and credit market companies play a crucial role in this respect.
Having well-capitalised banks and credit market companies is crucial for preserving their resilience and maintaining the credit supply. Given the current situation, FI therefore expects these firms not to issue dividends to shareholders until the widespread uncertainty surrounding the economy has stabilised.
FI is therefore sending a letter to all banks and credit market companies under FI’s supervision in the next few days that will urge the boards of directors to immediately modify their proposed dividends and the spring’s annual general meetings to resolve not to pay any dividends. The objective is to ensure that these firms continue to have good resilience to potential credit losses and the capacity to uphold the supply of credit.
“It is important for the banks to act responsibly now and strengthen their resilience at this critical point in time,” says Director General Erik Thedéen.