ECB loosens ban on bank dividends

  • The European Central Bank is easing its ban on banks paying out part of their 2019-2020 profits to shareholders if they have enough capital.
  • "The ECB expects dividends and share buybacks to remain 15% of cumulated profit for 2019-20 and not higher than 20 basis points of the Common Equity Tier 1 ratio, whichever is lower," the ECB said.
  • The recommendation remains until September, Reuters reports.
  • The central bank first asked European banks in March to refrain from paying dividends until October in an effort to preserve cash for lending as the pandemic roiled financial markets.
  • ETFs: EUFN
  • European bank tickers: Deutsche Bank (DB +2.6%), Banco Santander (SAN +3.5%), ING Group (ING +2.3%), Commerzbank (OTCPK:CRZBY +4.1%), BNP Paribas (OTCQX:BNPQF +1.8%), Credit Agricole (OTCPK:CRARF).

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