SAN - ECB signals allowing bank dividends next year - FT

EU banks may be allowed to pay dividends again next year if they can show regulators that their balance sheets are strong enough to withstand the economic and financial effects of the COVID-19 pandemic, the Financial Times reports, citing a senior European Central Bank executive.Back in March, the ECB ordered banks to halt all dividends and stock buybacks to conserve €30B of capital soon after COVID-19 hit Europe. Since then, the industry has been lobbying for stronger banks to be allowed to distribute capital to shareholders early next year.Yves Mersch, vice chair of the ECB's supervisory board, told the FT he's concerned that banks benefiting from eased capital requirements would pay out some of that capital to shareholders, but it would be difficult to extend a dividend prohibition beyond the end of this year.He mentioned uncertainty over the ban's legal enforceability and the potential for other countries, such as the

For further details see:

ECB signals allowing bank dividends next year - FT