Banque de France’s Villeroy supports end of ECB dividend restrictions –

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Banque de France’s Villeroy supports end of ECB dividend restrictions – fr


Banque de France Governor François Villeroy de Galhau has said he supports lifting restrictions on dividend payments from European banks to ensure a level playing field with competitors in other markets.
A formal decision to lift the current restrictions is needed to keep European banks attractive to investors, as the exceptional UK payments measures are less stringent and could be lifted as early as the end of June in the US, Villeroy, which also sits on the Governing Council of the European Central Bank, said Friday at a conference. A decision should be made by the end of July, he said.

“There is no reason why the Euro zones should maintain longer and stronger restrictions on dividends when it does not present greater risk, ”he said.

As the main banking watchdog in the euro area, the ECB is currently considering lift the brakes at the end of September, unless the economic outlook deteriorates significantly. The measure was part of an unspoken quid pro quo for state support and regulatory relief to the banking sector during the pandemic, but sparked complaints from executives who said they were unfairly restricted.

Read more: BNP Paribas asks ECB to promise dividend ban will not come back

This month, BNP Paribas SA CEO Jean-Laurent Bonnafe called on the ECB to signal that it does not intend to make permanent use of controls on dividend payments.

“Investors, especially Anglo-Saxons, must return to normalcy with a commitment that will never return, even in relatively atypical situations,” said Bonnafe.

– With the help of Nicholas Comfort

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