Banks are under pressure from the European Union. No dividends are due to be paid to shareholders this year. This is the recommendation of the central bank of the euro area. Because if a banking institution paid dividend bonuses, they could become poorer. By keeping this money, the banks are securing a nice cushion estimated at more than 27 billion euros.
This helps limit the risk of going bankrupt if the crisis worsens. “The banks, if they don’t distribute a dividend, they self-insure themselves against future losses and that therefore normally prevents the taxpayer, you and I, having to put in the pocket to bail out the banks, as we have. could do it at other times “, confides Laurence Scialom, economist.
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