ECB Officials Signal Growing Support for Bank Dividend Return
- Villeroy says French banks must be attractive for investors
- Panetta says a prudent, case-by-case approach is reasonable
Photographer: Benjamin Girette/Bloomberg
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A growing number of top European Central Bank officials are voicing support for ending the de facto ban on banks paying dividends during the pandemic, laying the groundwork for a resumption next year and a return of investor confidence to the sector.
Bank of France Governor Francois Villeroy de Galhau on Friday became the third ECB governing council member this week to signal support for a resumption in payouts. Their comments will influence the debate on whether to end the ban at a meeting of the central bank’s supervisory arm next month.