Bank dividend suspension proved effective – ECB

transparent-profits

The European Central Bank recommendation for banks to suspend the distribution of profits during the pandemic proved effective, said the supervisor today (August 18).

Analysis suggests “banks that altered their dividend distribution plans increased provisions by 5.5% and lending to the real economy by 2.4% relative to banks that left their distribution plans unchanged”, said the ECB. Some banks had already made dividend payments, or already had no plans to make a payout.

ECB Banking

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: