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Enria, hypothesis to recalculate bank dividends on embargo scenarios

2022-06-30T13:33:25.380Z


The ECB could ask banks to prepare for the economic repercussions of a cut in gas supplies and also take them into account in dividend policies. (HANDLE)


(ANSA) - BRUSSELS, JUNE 30 - The ECB could ask banks to prepare for the economic repercussions of a cut in gas supplies and also take them into account in dividend policies.

With the risk of "a macroeconomic scenario worse than expected, if there was a gas embargo and if a recession started, the prospects for banks could be worse" ", explained Andrea Enria, chairman of the supervisory board of the central institution, in hearing in the Economic Affairs Committee in the European Parliament.


   "We will talk about it next week at the supervisory board, but we could ask the banks to recalculate the credit trajectories in the event of a worsening of the economic situation, even in the case of an embargo, and take advantage of this analysis also to be able to manage the distribution plans", he added.


   "The current environment" is "characterized by greater volatility and lower equity valuations, as markets expect banks' profitability and asset quality to be affected by adverse macroeconomic developments. The June 2022 Eurosystem Staff macroeconomic projections introduce for the first time a downward scenario involving a possible recession in 2023 following interruptions in the energy supply of the


Source: ansa

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