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ECB Leans Toward Asking Banks to Halt Dividends This Year

  • Several on supervisory board want more clarity on economy
  • Some lenders are lobbying to resume dividend payouts
    
Photographer: Christophe Morin/Bloomberg
Updated on

The European Central Bank is leaning toward asking banks to hold off on dividends at least through the end of the year, putting a damper on investor hopes that payouts could be restarted in the fourth quarter.

Several members of the central bank’s supervisory board don’t yet see enough clarity on the economy to justify that lenders start returning capital again, according to people familiar with the matter. No final decision has been taken, said the people, who asked to remain anonymous as the matter isn’t public.