Banks should use the substantial profits they obtained in 2009 to strengthen their capital position rather than to compensate their shareholders and managers, said Lorenzo Bini Smaghi, a member of the European Central Bank's executive board.

Bini Smaghi said this policy was not only preferable over the medium term, but was also more ethical. He said it did not appear appropriate that banks used the profits stemming from the direct or indirect support of public policies, fiscal or monetary, for