ECB establishes tough conditions for banks to resume dividends
Dividends must remain below 15% of cumulative profits in 2019-20 and no higher than 0.2% of CET1 ratio
Banks in the eurozone will be able to resume dividends in 2021, but under strict limitations, said the European Central Bank on December 15.
In fact, the supervisor of the region’s 113 largest lenders is calling on banks to refrain from paying dividends completely or to curb payouts until September 2021.
“Given the persisting uncertainty over the economic impact of the coronavirus (Covid-19) pandemic, the ECB expects dividends and share buy-backs to remain below 15% of the cumulated profit for
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