ECB issues recommendation to banks not to pay dividends until at least October 2020

The European Central Bank (ECB) has, on the 27 March 2020, updated its recommendation to banks on dividend distribution. The ECB requested banks not to pay dividends (or engage in share buy-backs aimed at providing remuneration to the shareholders) for the financial years 2019 and 2020 until at least 1 October 2020.  Banks whose shareholders are to decide on the declaration of a dividend in an upcoming AGM, are expected to take this recommendation under advisement. On the other hand, dividends already paid out for FY 2019 will not be affected by the Recommendation.

For further information, please contact DF’s financial services team at dfcs@dfadvocates.com

Photo: Reuters


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