FILE PHOTO: The headquarters of the European Central Bank (ECB) is illuminated with a giant euro sign at the start of the “Luminale, light and building” event in Frankfurt, Germany, March 12, 2016. REUTERS/Kai Pfaffenbach/File Photo
March 27, 2020
FRANKFURT (Reuters) – Euro zone banks struggling with the consequences of the coronavirus outbreak should be prudent when deciding whether to pay a dividend so as to avoid needing fresh capital later, the European Central Bank said on Friday.
“Banks should be prudent when deciding about dividends and have a forward-looking view on risks to avoid a situation where capital needs would arise,” an ECB spokeswoman said in a statement.
(Reporting By Francesco Canepa; Editing by Balazs Koranyi)
