ECB Signals Readiness to Curb Bank Dividends When Cap Lifts
- Bank of Spain deputy governor comments in interview in Madrid
- Banks should pursue “average” dividend policy when cap lifted
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The European Central Bank could take steps to ensure that lenders avoid paying excessive dividends later this year, when it will “most likely” lift a cap on payouts, a top official said.
Margarita Delgado, a member of the ECB’s supervisory board, said in an interview on Monday that the central bank will call on lenders to remain “cautious.” Her remarks dampen the possibility of a surge in payouts as the European economy shakes off the worst impact of the pandemic.