2023-12-20 05:46:07
The head of banking supervision at the European Central Bank, Andrea Enria, said in an interview Bloomberg TVthat by the end of 2023, European banks will pay shareholders a total of about €70 billion.
According to Mr. Enria, EU banks have been profitable this year, so they plan to distribute income at the level of previous years. He noted that the amount he named is “very preliminary.”
According to the agency, the capital of the EU’s ten largest banks exceeds the funds required for regulatory purposes by more than €140 billion. Mr. Enria said the ECB will assess whether payouts to shareholders are in line with the banks’ capital trajectory.
A regulator spokesman warned that banks should remain vigilant. He said that the ECB is still concerned about credit risks, especially in the real estate sector, including commercial real estate.
On December 14, the ECB decided to keep all three key interest rates at the same level. The base rate on loans is 4.5%, on margin loans – 4.75%, on deposits – 4%. The regulator has not changed interest rates since September. Moreover, since July 2022, the ECB has raised rates at ten consecutive meetings.
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