The European Central Bank (ECB) has asked banks in the region not pay out dividends to shareholders until at least October 2020. The recommendation was issued by the ECB last Friday to "boost banks' capacity to absorb losses and support lending to households, small businesses and corporates during the coronavirus (COVID-19) pandemic." This recommendation would not retroactively cancel any dividends already paid out this year. But banks are asked to scratch any dividend proposals that may have been put forth for vote at upcoming shareholders meetings. The ECB is also requesting that European banks avoid offering share buybacks until October for the same reasons. Image source: Getty Images Several banks have already announced plans to comply, including Commerzbank, Rabobank, ING Group, ABN AMRO, and KBC Group. KBC also cancelled a proposed share buyback program. Other banks in Europe are expected to meet in the coming days to discuss the matter and likely follow suit. "In view of the Corona pandemic our priority is to support our customers," said Martin Zielke, chairman of the board at Commerzbank. "We have strong capital buffers and a comfortable liquidity position that are above all regulatory requirements. Nevertheless, given the uncertainties surrounding the coronavirus pandemic, it makes sense to follow the ECB's recommendation and suspend dividend payments for the time being." This request does not affect U.S.-based banks. None of the major U.S. banks have postponed their dividends, but the eight largest banks agreed to suspend share buyback programs through the second quarter. 10 stocks we like better than ING GroepWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and ING Groep wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source