ECB cautions banks to be conservative on dividends

Supervisors at the European Central Bank urged banks under its watch to be conservative in making dividend payments, warning in a statement on Thursday that they would also examine their bonus payments in the coming months. "Banks should base their dividend policies on conservative and prudent assumptions, so that after any pay-out they can still fully cover their current capital requirements and prepare themselves to meet more demanding capital standards," said Daniele Nouy, the head of the ECB's bank supervision arm. In its statement, the ECB said that it had told banks that "variable remuneration will be thoroughly reviewed in the coming months".

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