This paper evaluates the impact of the March 2020 European Central Bank recommendation that banks do not pay dividends … or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during … highlights the importance of managing perceptions about dividend uncertainty through credible communication about the expected …

This paper evaluates the impact of the March 2020 European Central Bank recommenda-tion that banks do not pay dividends … or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during … highlights the impor-tance of managing perceptions about dividend uncertainty through credible communication about the expected …

trends. When shocks hit their profits, banks tend to adjust retained earnings to smooth dividends. This generates bank equity … effects of a novel macroprudential policy rule - that I shall call Dividend Prudential Target (DPT) - aimed at complementing …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short … securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

-specific capital buffers in the countries where their parent banks reside and that bank size and liquidity play a role in determining …

, over a decade and a half preceding the pandemic, bank dividend payouts were adjusted in line with the three motivations …Economic literature suggests that banks change their dividend payouts for three main reasons. They may be willing to … to introduction of sector-wide recommendation by regulators to suspend dividend payouts in view of prevailing large …

set available at the European Central Bank related to the 2016 EU-wide stress test, this paper presents novel empirical … evidence that supervisory scrutiny associated to stress testing has a disciplining effect on bank risk. We find that banks that …

highlight weak macro-economic conditions, lax bank supervision and individual bank weakness as the key factors …