ECB Rules Out Repeat of Dividend Ban as Banks Weather Turmoil

Europe’s top banking watchdog ruled out blanket restrictions on dividends in the wake of the recent market meltdown, saying lenders have so far weathered the fallout from the global trade war well.

While there have been “increasing margin calls” — banks demanding more collateral from investors when asset prices slump — the situation is different from the shock created by the pandemic lockdowns in 2020, Claudia Buch, chair of the European Central Bank’s Supervisory Board, said in an interview.