ECB’s Villeroy Calls On Banks to Remain Cautious on Buybacks
- Nothing justifies a dividend ban like in 2020, Villeroy says
- France could keep bank’s countercyclical buffer at 1% in 2023
The La Defense financial district in Paris.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
Bank of France Governor Francois Villeroy de Galhau urged commercial banks to exercise caution on share buybacks -- raising the pressure on lenders as they prepare their shareholder-payout plans for 2022.
Addressing a conference Monday in Paris, Villeroy reiterated that while French banks remain solid and should benefit from rising interest rates, heightened volatility and slower economy growth in Europe should keep them vigilant on capital projections.