We are witnessing the gestation of a banking crisis due to the current situation of the epidemic and the resulting economic crisis.
Very quickly, the ECB asked the commercial banks not to pay dividends and to keep these billions to strengthen their reserves and their equity in order to be able to take more losses and credit defaults from their customers for whom many personal and professional bankruptcies are to be expected.
This measure, which may seem appropriate, simple and common sense, is however beginning to have repercussions on both savers and employees.
If the shareholders of the large listed banks have not received dividends, the same applies to members of mutual banks for which the subscription of shares is also an alternative investment, allowing to receive additional income, low risk.
For all the employees concerned, it is also the end of incentives and participations, which can only be paid by “participation” in profits and therefore in dividends.
The worst situation is that of employees of listed banks and whose shares have fallen sharply and benefiting from PEE (company savings plan) and benefiting from large contributions in shares from their employers.
Finally, more seriously, by no longer remunerating members, mutual banks could find themselves even more weakened, because many members could be tempted to take back their shares, which would create a hole in the banks’ own funds, and the number of new ones. voluntary members may also be reduced …
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It is already too late, but all is not lost. Prepare yourselves !