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ECB to lift bank dividend restrictions after Sept - Metro US

ECB to lift bank dividend restrictions after Sept

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt

FRANKFURT (Reuters) – The European Central Bank will lift restrictions on bank dividend payments and share buybacks beyond September, it said on Friday, clawing back a crisis measure that forced lenders to retain capital during the pandemic.

“The latest macroeconomic projections confirm the economic rebound and point to reduced uncertainty, which is improving the reliability of banks’ capital trajectories,” the ECB said in a statement.

“As a result, it is appropriate to reinstate the previous supervisory practice of discussing capital trajectories and dividend or share buy-back plans with each bank,” the ECB added.

(Reporting by Balazs Koranyi, editing by Louise Heavens)

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