ECB's de Cos: Banks should be prudent regarding their dividend policy

Banks in the eurozone should be prudent regarding their dividend policy, European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said on Thursday, as reported by Reuters.

"The recommendation will remain valid until the end of September 2021 when, provided there are no materially adverse developments, the ECB intends to lift the recommendation and return to assessing banks' capital and dividend distribution plans," de Cos further explained.

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading virtually unchanged on the day at 1.2155.