Banking Law News

ECB, Banks in Talks on Dividend Options Including Delays (2)

March 26, 2020, 2:34 PM

The European Central Bank is in talks with the continent’s lenders on dividends as banks across the region grapple with shareholder payouts amid one of the worst economic crises in recent years.

One option under discussion between the euro area’s main financial supervisors and the banks is to delay paying out profits to shareholders until at least the third quarter -- when the crisis may be past its peak -- as one way to preserve capital, according to a person with knowledge of the matter who requested anonymity. The ECB declined to comment.

Banks have already received unprecedented relief from...

To read the full article log in. To learn more about a subscription click here.