ECB Steps Up Pressure on Bank Dividends to Weather Virus Crisis
- Enria says central bank could take legally binding steps
- ECB also encouraging moderation on staff bonuses, Enria says
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The European Central Bank increased the pressure on banks to curb dividends and bonuses during the coronavirus crisis, saying it could impose legally binding measures if lenders don’t fall in line.
The ECB expects all banks to follow its recommendation to delay dividends until at least October, Andrea Enria, the institution’s top banking watchdog, told Bloomberg TV on Tuesday. While he didn’t single out any banks, it was a clear warning to firms that have been slow to act, especially French banks that have promised large sums to shareholders.