EU RESPONSE TO COVID-19 / Banks

ECB extends its recommendation to banks not to pay dividends until January 2021

Brussels, 28/07/2020 (Agence Europe)

The European Central Bank (ECB) announced on Tuesday 28 July its decision to extend by 3 months, until January 2021, its recommendation to banks not to pay out dividends or buy back shares.

Originally issued in March (see EUROPE B12461A14), this recommendation remains “temporary” and “exceptional” and aims to preserve the ability of banks to absorb losses and support the economy in this environment of exceptional uncertainty, the ECB assures.

The ECB also calls on banks to be...