Spain Should Keep Bank Cash Dividend Limit in 2014, IMF Says

Spanish banks should limit cash dividends for another year and take advantage of a jump in share prices to raise capital, the International Monetary Fund said.

The government should consider strengthening the power of the Bank of Spain, which has recommended banks restrict cash dividends this year, so it can force them to cap payouts, the IMF said today in its fourth review of Spain’s progress in meeting the terms of its European banking bailout.