Visit our Covid-19 microsite for the latest coronavirus news, analysis and updates


Follow the latest updates of the coronavirus (Covid-19) outbreak on our timeline.

The European Banking Authority (EBA) has urged banks to adopt a conservative approach during awarding of bonuses, if not stopping them completely, to withstand the economic shock arising from the Covid-19 pandemic.

The EBA was quoted by Reuters as saying: “Remuneration and, in particular, its variable portion should be set at a conservative level.

“To achieve an appropriate alignment with risks stemming from the COVID-19 pandemic a larger part of the variable remuneration could be deferred for a longer period and a larger proportion could be paid out in equity instruments.”

Recently, the European Central Bank urged banks to halt dividends and share repurchase programmes until at least October.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

The initiative is expected to reap savings of €30bn.

Instead, the EBA has asked banks to give the relief provided to them to fund companies and individuals.

Analysts are expecting a similar move by the Bank of England.

ABN Amro, Commerzbank as well as UniCredit, among others, have already halted plans to distribute dividends.

To give some breather to banks, the EBA has given banks an additional month to submit data related to capital and risks.

Usually, the data has to be submitted from March-May.

Besides, the regulator reportedly plans to scrap this year’s study on the effect of global capital and liquidity requirements on European banks.