OSLO, Oct 11 (Reuters) - Norway should not allow banks and insurers to make quarterly dividend payments, which some financial institutions have sought to do, the country’s Financial Supervisory Authority (FSA) said in a recommendation to the Finance Ministry late on Wednesday.
Banks and insurers that meet certain capital requirements are allowed to pay dividends annually.
“Banks could see significant increases of losses during times of weak economic development,” the FSA said, adding that this should be a key argument for allowing full-year payments only.
It added that for insurance companies, quarterly dividends could weaken the ability to take necessary solidity precautions.
The FSA may however still authorise buy-backs of shares. (Reporting by Camilla Knudsen, editing by Terje Solsvik)