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The European Central Bank has extended a ban on banks paying dividends and buying back stock.
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The European Central Bank on Tuesday extended a ban on banks paying dividends and buying back their own stock.
The ECB said the prohibition has been extended from October to the end of the year.
Andrea Enria, chair of the supervisory board of the ECB, said the decision came alongside an assessment of the potential vulnerabilities of the euro area banking sector in the wake of the coronavirus pandemic.
The Euro Stoxx banks index SX7E, +0.34% has dropped 34% this year, worse than the 12% fall for the broader Stoxx Europe 600 SXXP, +0.22%.
