The ECB “decided not to extend beyond September 2021 its recommendation that all banks limit dividends," the central bank said in a statement on Friday. “Instead, supervisors will assess the capital and distribution plans of each bank as part of the regular supervisory process." The ECB’s decision comes after the Bank of England said this month it’s fully removing guardrails that limited dividends at HSBC Holdings Plc, Barclays Plc, Standard Chartered Plc and other top lenders. “The latest macroeconomic projections confirm the economic rebound and point to reduced uncertainty, which is improving the reliability of banks’ capital trajectories," the ECB said. Banks shouldn’t underestimate “the risk that additional losses may later have an impact on their capital trajectory as support measures expire," the central bank said in its statement.

Source: Mint July 23, 2021 16:41 UTC