MNI POLICY (CORRECTED): Some Banks Will Not Survive-Enria

(Corrects date of macroeconomic projections in first paragraph)

The eurozone's bank supervisor will wait until European Central Bank macroeconomic projections on Dec. 10 before deciding whether to lift a recommendation that lenders suspend dividend payments, ECB Supervisory Board Chair Andrea Enria said in an interview on Thursday, warning that some banks will not survive the economic crisis.

"Of course they're putting pressure on us," he told De Tijd and L'Echo. "That has not escaped my attention. We will do what is in the best interest of the sector."

A second Covid wave with a more sluggish recovery means the impact on banks' capital and asset quality "could become much more significant," he added. Banks should "hope for the best, but prepare for the worst."

"If they take early action, by restructuring loans and putting customers back in a position where they are able to pay, then they can avoid a significant rise in NPLs at the end of the moratoria.

"Some of them will see temporary difficulties but are more likely to survive this crisis, while others are not in good shape and will not come out of this," he said.