Europe’s banks scrap dividends to protect capital cushions amid virus outbreak – The National

Europe’s banks scrap dividends to protect capital cushions amid virus outbreak – The National

Europe's banks scrap dividends to protect capital cushions amid virus outbreak. European banks are scrapping payouts to protect their capital cushions because of the fast-deteriorating economy.. Regulators are issuing repeated calls to lenders to be prudent in how they spend capital as the region confronts the worst recession in living memory.. The European Central Bank - which on Friday urged banks to delay dividends - is now turning its attention to keeping bankers' variable compensation in check.. "Our recommendation to banks is to be very moderate on" bonuses, he said.. As with dividend cuts, Spanish banks have been among the first to kick off the Europe-wide trend, with Banco Bilbao Vizcaya Argentaria on Monday saying that 300 of its top executives waived their 2020 bonuses.. Mr Enria, in the interview, said that bonuses right now are less of a concern than dividends because many banks have already paid them.. Credit Suisse earlier this year decided to pay out 3.17 billion Swiss francs ($3.28bn) in bonuses for last year.. Deutsche Bank paid out 1.5bn euros.. Many medium- to low-income earners - of which there are many in Deutsche Bank - have made a contribution over the past years through the previous