Reflections on regulatory responses to the Covid-19 pandemic: restrictions on dividends, increased transparency and the integration of climate-related risks must be at the center of the response

Reclaim Finance supports the Financial Stability Institute's call for restrictions on bank dividends and bonuses and increased transparency during the Covid-19 pandemic. However, it argues that these measures are insufficient unless they also include lower credit rates for small businesses and households, and a systemic integration of climate-related risks. The author proposes adjusting countercyclical buffers and capital requirements to reflect exposure to carbon-intensive assets and fossil fuels, alongside 'green' recovery plans that exclude fossil fuels.

• The Financial Stability Institute of the Basel Committee recommends that regulatory easing for banks be linked to restrictions on dividends and bonuses for all banks to prevent market valuation distortions, and that creditworthiness assessment criteria be disclosed.
• Reclaim Finance asserts that the low cost of liquidity provided to banks by regulatory and monetary measures should result in lower credit rates for households and small businesses.
• To build resilience against future exogenous shocks, the author argues for the integration of climate-related risks into financial regulation, specifically by adjusting countercyclical buffers and increasing capital and liquidity requirements based on banks' exposure to fossil fuels and carbon-intensive assets.

APA

admin (2020). Reflections on regulatory responses to the Covid-19 pandemic: restrictions on dividends, increased transparency and the integration of climate-related risks must be at the center of the response. Reclaim Finance. https://reclaimfinance.org/site/en/2020/04/20/reflections-on-regulatory-responses-to-the-covid-19-pandemic-restrictions-on-dividends-increased-transparency-and-the-integration-of-climate-related-risks-must-be-at-the-center-of-the-response/

Chicago

admin. Reflections on regulatory responses to the Covid-19 pandemic: restrictions on dividends, increased transparency and the integration of climate-related risks must be at the center of the response. Reclaim Finance, 2020. https://reclaimfinance.org/site/en/2020/04/20/reflections-on-regulatory-responses-to-the-covid-19-pandemic-restrictions-on-dividends-increased-transparency-and-the-integration-of-climate-related-risks-must-be-at-the-center-of-the-response/.

Wikipedia

{{cite press release |last1=admin |title=Reflections on regulatory responses to the Covid-19 pandemic: restrictions on dividends, increased transparency and the integration of climate-related risks must be at the center of the response |publisher=Reclaim Finance |date=20 April 2020 |url=https://reclaimfinance.org/site/en/2020/04/20/reflections-on-regulatory-responses-to-the-covid-19-pandemic-restrictions-on-dividends-increased-transparency-and-the-integration-of-climate-related-risks-must-be-at-the-center-of-the-response/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{admin2020reflections, author = {admin}, title = {{Reflections on regulatory responses to the Covid-19 pandemic: restrictions on dividends, increased transparency and the integration of climate-related risks must be at the center of the response}}, publisher = {Reclaim Finance}, year = {2020}, month = apr, url = {https://reclaimfinance.org/site/en/2020/04/20/reflections-on-regulatory-responses-to-the-covid-19-pandemic-restrictions-on-dividends-increased-transparency-and-the-integration-of-climate-related-risks-must-be-at-the-center-of-the-response/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }