ECB tells banks to suspend dividends for the rest of the year

By David Freitas
28 Jul 2020

The European Central Bank recommended this week that banks do not pay dividends or buy back shares until the start of 2021 at the earliest. It is also calling for 'extreme moderation' over banker bonuses during the coronavirus pandemic.

Market participants had expected the ECB to extend its effective ban on shareholder distributions to the end of the year, having originally only asked banks to switch off dividends and buy backs until October.

The new recommendation is in line with guidance set out by the European Systemic Risk ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial