Bank of Lithuania
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  • ECB asks banks not to pay dividends and not to buy back shares until January 2021
  • ECB expects banks to exercise extreme moderation on variable remuneration to conserve capital in crisis
  • ECB clarifies expected pace for banks to restore capital and liquidity positions

The European Central Bank (ECB) today extended its recommendation to banks on dividend distributions and share buy-backs until 1 January 2021 and asked banks to be extremely moderate with regard to variable remuneration. It also clarified that it will give enough time for banks to replenish their capital and liquidity buffers in order not to act pro-cyclically.

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