FRANKFURT, May 13 (Reuters) - The European Central Bank has no plan to curb payouts on convertible bank bonds known in the market as Additional Tier 1 after successfully leading banks to cancel most dividends, the ECB’s top bank supervisor Andrea Enria said on Wednesday.
“There were some concerns that we might also consider other restrictions, including on additional Tier 1 instruments,” Enria said in the ECB’s supervisory newsletter. “Let me be clear: we are not planning to put any constraints on payments of such instruments.”
Of the 35 billion euros in dividends that were scheduled to be paid by euro zone banks, the ECB expects that more than 27 billion euros would be retained as capital, Enria said. (Reporting by Balazs Koranyi Editing by Francesco Canepa)