“We will exit from these dividend recommendations, hopefully soon,” said Andrea Enria, who chairs the ECB’s supervisory board. “We have tabled a decision at our board on July 23 and we will communicate shortly after that.”
European banking stocks slumped last year as the ECB essentially banned shareholder payouts to ensure banks had sufficient reserves to swallow losses and keep lending in the pandemic. The watchdog later capped such returns in the first nine months of this year and has said it will lift those limits unless the economy deteriorates.
“It’s clear that there is still a lot of uncertainty and credit risk has not materialized for the banks, in the books of the banks, so prudence should still be a polar star in the coming months,” he said on Tuesday.
Enria, who spoke at an online conference, also said:
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Source: Economy - investing.com
