02191cas a2200325 a 4500 AALejournalIMF023174 230101c9999 xx r poo 0 0eng d 9798400218972 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Belloni, Marco. Why European Banks Adjust their Dividend Payouts? / Marco Belloni, Maciej Grodzicki, Mariusz Jarmuzek. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using a panel data approach for two samples of listed and unlisted European banks, this paper provides evidence that, over a decade and a half preceding the pandemic, bank dividend payouts were adjusted in line with the motivations found in the literature. Banks change their dividend payouts because they would like to signal good profitability to shareholders to address information asymmetry, or use dividends to mitigate the agency costs, or could come under pressure from prudential supervisors and regulators to retain earnings. Banks are found not to discount expectations about future economic conditions or their own profitability when making payouts. Simulations show that, in the absence of supervisory sector-wide recommendations to suspend dividend payouts, banks would likely have reduced the payouts only slightly in the first year of the pandemic. Mode of access: Internet Banks imf Depository Institutions imf Foreign Exchange imf Informal Economy imf Underground Econom imf Grodzicki, Maciej. Jarmuzek, Mariusz. IMF Working Papers; Working Paper ; No. 2022/194 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=194 IMF e-Library