Thus, once these restrictions are lifted, some banks are most likely to convene a general meeting of shareholders for new decisions regarding dividends. Next comes a wave of dividend payments of hundreds of millions of euros from Romanian banks’ coffers to shareholders in foreign countries.
Market leader lender Banca Transilvania has already approved RON500 million for cash dividends. The total dividends Banca Comerciala Romana (BCR), controlled by Austria’s Erste, would like to pay out go beyond RON871.9 million.
The National Macroprudential Supervisory Committee (CNSM) decided not to extend recommendations on restrictions related to bank dividend payment during the pandemic, given the consistent capital buffer levels and the similar stance the European Central Bank announced in July.
Banking system solvency could slide by around 2% in the wake of dividend payment resumption, in line with Romania’s central bank estimates.
(English version by Catalina Apostoiu)