Supervision release 27 July 2021 – 34/2021

FIN-FSA decides not to extend its recommendation on distribution of credit institutions’ profits beyond 30 September 2021

The Financial Supervisory Authority (FIN-FSA) has decided not to extend its recommendation on the distribution of credit institutions’ profits beyond 30 September 2021. The recommendation expires as to both profit distribution and variable remuneration. Credit institutions’ decisions on profit distribution should take place after 30 September 2021.

The FIN-FSA's decision takes into account the decision taken by the European Central Bank (ECB) on 23 July 2021 not to extend beyond September 2021 its recommendation that all banks limit dividends. The ECB's decision is based on the rebound in economic activity and hence reduced uncertainty.

The FIN-FSA expects that credit institutions will continue to consider in their profit distribution plans and their activities overall the risks caused by the prolonged COVID-19 pandemic. In the distribution of profits, credit institutions should carefully assess the soundness of their capital base and business model and pay particular attention to credit risks.

The FIN-FSA issued in 2020 several recommendations on banks’ profit distributions. In its latest recommendation (of 18 December 2020), the FIN-FSA recommended that credit institutions under its direct supervision exercise extreme prudence and apply quantitative criteria in profit distribution for the financial periods 2019–2020. The FIN-FSA's previous recommendations on profit distributions have been in line with the ECB.

For further information, please contact

Jyri Helenius, Deputy Director General of the FIN-FSA, Head of Department, Banking Supervision tel. +358 9 183 5312 or

See also

Previous supervision releases aimed at credit institutions under direct FIN-FSA supervision:

Previous FIN-FSA press releases on the recommendation concerning profit distribution