FRANKFURT (Reuters) – The European Central Bank extended on Tuesday a recommendation to euro zone banks not to pay dividends until the end of the year, while also allowing them to eat into their capital and liquidity buffers for even longer to help them cope with the economic fallout of the coronavirus pandemic.
The ECB added lenders on its watch “can withstand pandemic-induced stress, but if the situation worsens, depletion of bank capital would be material”.
(Reporting By Francesco Canepa; Editing by Alex Richardson)
