Banks should keep capital, not pay dividends -IMF

Banks are starting to make money and should conserve the capital, including by not paying dividends, a senior International Monetary Fund official said on Wednesday.

"There is a temptation when you go back into profits to have the equity buybacks and the dividend payouts," Jose Vinals, director of the IMF's Monetary and Capital Markets Department told a news conference.

"Capital conservation is something that is very important at this stage," he added.