12.8.1 The modalities of the coupon and dividend ban

As explained in sections 12.5 and 12.6, Member States usually commit that the beneficiary bank shall not to pay any dividends and coupons or exercise calls on subordinated debt instruments and hybrid capital instruments during the restructuring period. This commitment is regarded favourably by the Commission, because it ensures burden-sharing by the shareholders, hybrid capital holders and subordinated debt holders of the bank. Since the coupon ban and the dividend ban are usually bracketed together in the decisions1, these bans will be analysed together in the present section. In particular, the present section will zoom in on how the coupon and dividend ban is elaborated in the decisions. To that end, the modalities of the coupon and dividend ban will be analysed. These modalities concern the duration of the coupon and dividend ban (see subsection 12.8.1.1), the limitations of the coupon and dividend ban (see subsection 12.8.1.2) and the exceptions to the coupon and dividend ban (see subsection 12.8.1.3).