In accordance with several policy stances taken at the European level during 2020, the MFSA has issued a Circular, on 24 December 2020, concerning the restrictions on dividends distributions or share buy-backs and variable remuneration in light of the COVID-19 crisis. In this regard, credit institutions are being requested to consider refraining from distributing any cash dividends or conducting share buy-backs, or to limit such distributions. In addition, credit institutions are expected to act with extreme caution with respect to variable remuneration.

The policy stance outlined above is in line with the ECB Recommendation (ECB/2020/62) and ESRB Recommendation (ESRB/2020/15) and applies until 30 September 2021. Further guidance may be provided in due course, if necessary.