Markets expect ECB to extend bank dividend ban

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By Tyler Davies
23 Jul 2020

Reports that the European Central Bank (ECB) could ask banks to suspend dividend payments until the end of 2020 sent subordinated debt higher and stocks lower this week.

Several press outlets reported that the ECB’s supervisory arm will extend a ban on discretionary distributions next week.

The Single Supervisory Mechanism (SSM) had originally told financial institutions not to redistribute capital to their shareholders until October 1.

The recommendation, which covered share buybacks as ...

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