ECB asks banks to refrain from paying dividends
The European Central Bank (ECB) recommended to banks on Friday to refrain from paying dividends at least until October 1, 2020, as well as from performing share buy-backs amid coronavirus induced economic shock.
The ECB said it considered crucial that banks continue to fund households, small and medium businesses and corporations amid the coronavirus induced economic shock. “It is therefore essential that credit institutions conserve capital to retain their capacity to support the economy in an environment of heightened uncertainty caused by COVID-19,” the ECB stressed.
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