ECB extends recommendation for European banks to freeze dividends, buybacks for the rest of the year

ECB asks European banks to hold off on dividends and not to buy back shares until January 2021

• Calls for banks not to commit to pay dividends for the rest of the year
• Expects banks to exercise moderation to conserve capital
• ECB will review whether or not this stance remains necessary in Q4
• Will take into account economic environment, financial system and capital planning

That won't be welcome news for banking stocks as we look towards the session ahead. But hoping to have this recommendation lifted by October was always a long shot anyway.