ECB announced today to extend “the end of the period in which we recommend that banks should not pay dividends or buy back shares from October 2020 until the end of the year.”
Andrea Enria, Chair of the Supervisory Board of the ECB, said in a blog post: “The current macroeconomic shock is of unprecedented magnitude and it is still highly uncertain how it will develop in the future, including its eventual impact on the banking sector…. the economic outlook remains contingent on too many uncertain variables, including a possible strong resurgence of infections accompanied by more stringent containment measures.”
“In the extraordinary circumstances created by the pandemic, all our supervisory measures and actions are and will continue to be aimed at ensuring that the banking sector can remain resilient and support the economic recovery with an adequate supply of credit.”
