MNI POLICY: EUR2 Bln Bank Dividends Withheld After ECB Request

By Luke Heighton

     FRANKFURT (MNI) - Eurosystem banks deferred dividends worth more than EUR25

billion following a request from the European Central Bank's Supervisory Board,

it has been disclosed.

     "At an aggregate level, significant institutions originally proposed to pay

EUR35.6 billion in dividends for the 2019 financial year. Of this, EUR27.5

billion has not been paid out," banking supervision chair Andrea Enria confirmed

in a letter to MEPs published Tuesday.

     The ECB recommended in March that banks not pay dividends for the 2019 and

2020 financial years and refrain from share buy-backs aimed at remunerating

shareholders, until at least Oct. 1 2020.

     "Almost EUR6.2 billion had already been paid out by the time the ECB's

recommendation was published," Enria added, "while just under EUR2 billion was

paid out after the recommendation was published."

--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$X$$$,M$$EC$]