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ECB tells banks to skip dividends, buybacks until October

Published 27/03/2020, 18:21
© Reuters. FILE PHOTO: Headquarters of the European Central Bank (ECB) is seen illuminated with a giant euro sign at the start of the "Luminale, light and building" event in Frankfurt, Germany

FRANKFURT (Reuters) - The European Central Bank told euro zone banks on Friday to skip dividend payments and share buybacks until October at the earliest and use their profits to support the economy as it is hit by the coronavirus pandemic.

"To boost banks' capacity to absorb losses and support lending to households, small businesses and corporates during the coronavirus (COVID-19) pandemic, they should not pay dividends for the financial years 2019 and 2020 until at least 1 October 2020," the ECB said in a statement.

© Reuters. FILE PHOTO: Headquarters of the European Central Bank (ECB) is seen illuminated with a giant euro sign at the start of the

"Banks should also refrain from share buy-backs aimed at remunerating shareholders."

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