EBF recommends banks to halt dividends due to COVID-19 crisis
1 April 2020
Banks should halt 2020 dividend payments to preserve capital and keep lending to businesses and households until the impact of the coronavirus epidemic is clearer, the European Banking Federation (EBF) said on March 27th 2020.
Most banks acknowledge paying 2020 dividends may be unlikely. However many are wary of pulling payouts for 2019 they had already told investors would be coming, setting up a potential battle if governments try to push them to.
This article provides further insight on the EBF’s recommendation.