ECB recommendation to banks to refrain from dividend payments until October at least

Last Friday ECB adopted a recommendation whereby, in light of the coronavirus crisis, banks should wait at least until October 2020 before paying dividends or undertaking share buy-backs (ECB announcement). According to the ECB recommendation, banks should redirect their retained earnings into addressing the liquidity difficulties of businesses and households, and into strengthening their own capital robustness for loss absorption. Because the ECB simultaneously called on all national supervisors to apply the measures, the Bank of Slovenia is also examining its options for an appropriate response at the level of the Slovenian banking system, taking the national specifics into account.