EBF acknowledges ECB recommendation on dividend distributions
BRUSSELS, 27 March 2020 – The European Banking Federation takes note of the European Central Bank’s recommendation on banks dividend distributions: banks should not pay dividends for the financial years 2019 and 2020 until at least 1 October 2020, in order to allow a total of 30 billion euro of additional capital of the highest quality to be kept within the system.
The EBF shares the ECB‘s view of the importance of the role of banks to support to businesses and households during the Covid-19 pandemic. “Under these difficult circumstances, banks, more than ever, stand with their customers. Exceptional times call for exceptional measures. We hope that the economic conditions will have normalized by October. By then European banks boards should be able to re-assess their dividend and share buy-back strategy”, says Jean-Pierre Mustier, President of the EBF.
As representative of the European banking sector the EBF had already expressed its support and commitment to helping businesses and households navigate the unprecedented challenges posed by the global pandemic. In a letter to the ECB Supervisory Board on Thursday, the EBF stressed the importance as well of taking into account the expectations of shareholders and the investors perception of the strength of the European banking sector.
Raymond Frenken, Director of Communications
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About the EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.