ECB tells banks to be prudent on dividends, avoid capital hole later

Euro zone banks struggling with the consequences of the coronavirus outbreak should be prudent when deciding whether to pay a dividend so as to avoid needing fresh capital later, the European Central Bank said on Friday.

“Banks should be prudent when deciding about dividends and have a forward-looking view on risks to avoid a situation where capital needs would arise,” an ECB spokeswoman said in a statement.
Source: Reuters (Reporting By Francesco Canepa; Editing by Balazs Koranyi)