BECH: Banks to interrupt divisions by 2021

Banks in the eurozone must refrain from paying divisions and buying shares by 1 January, according to European Central Bank Council (BQE).

The Frankfurt-based central bank hopes it will strengthen the ability of lenders to absorb losses during the coronary pandemic, while increasing capital so that loans can be extended to private consumers and businesses.

The construction of strong capital and liquidity tampons, since the last financial crisis, has enabled banks during this crisis to continue borrowing for families and businesses and thus help stabilise the real economy”, said Andrea Enria, chairman of the ECB Supervising Board, the ATSH.

Therefore, it is more important to encourage banks to use their liquidity capital and tampons now to continue focusing on this comprehensive task, lending”, he added.

So far, the ECB had urged banks not to make the payments of shareholders for shareholders by October 1st.