European Banks Asked to Freeze Dividends Until October
The European Central Bank (ECB) has asked banks in the region not pay out dividends to shareholders until at least October 2020.
The recommendation was issued by the ECB last Friday to "boost banks' capacity to absorb losses and support lending to households, small businesses and corporates during the coronavirus (COVID-19) pandemic."
This recommendation would not retroactively cancel any dividends already paid out this year. But banks are asked to scratch any dividend proposals that may have been put forth for vote at upcoming shareholders meetings. The ECB is also requesting that European banks avoid offering share buybacks until October for the same reasons.
Source Fool.com
