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ECB Board Member Paramo Says Banks Should Stop Dividend Payments

European Central Bank executive board member Jose Manuel Gonzalez-Paramo said banks should stop paying dividends until they recapitalize and dispose of activities that are no longer attractive.

“I don’t see it as sacrilege” Gonzalez-Paramo said in an interview published on the website of El Pais. He added that it was better to not pay a dividend than “have the state come in as a shareholder.”

Spanish banks are among some of the best “brands” in the world, though the current crisis is destroying the model of Spanish savings banks, he also told the newspaper.

To contact the reporter on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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