FRANKFURT (Reuters) – The European Central Bank will in December revisit its recommendation for euro zone banks to not pay dividends and may move to a more flexible, case-by-case approach, ECB board member Yves Mersch said on Friday.
“This recommendation is, and must remain, exceptional and temporary,” said Mersch, the deputy head of the ECB’s bank supervision arm.
“We will review it in December and, unless we conclude that the banks’ capital projections remain clouded by high uncertainty, we will revert to our usual supervisory practice of assessing planned distributions of dividends on a bank-by-bank basis.”
(Reporting by Balazs Koranyi; Editing by Kevin Liffey)
