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ECB tells banks to be prudent on dividends, avoid capital hole later

FRANKFURT (Reuters) - Euro zone banks struggling with the consequences of the coronavirus outbreak should be prudent when deciding whether to pay a dividend so as to avoid needing fresh capital later, the European Central Bank said on Friday.

"Banks should be prudent when deciding about dividends and have a forward-looking view on risks to avoid a situation where capital needs would arise," an ECB spokeswoman said in a statement.

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)