ECB Finds Synthetic Risk Transfers Boost Dividends Over Lending

The European Central Bank (ECB) has found that synthetic risk transfers have a more significant impact on bank dividends than lending to companies. According to researchers at the ECB, when SRTs issuance increases by 1%, dividend payouts rise by 0.07% while corporate loans grow by only 0.02%. This, they say, is 'too small to have a meaningful or substantial economic impact.'

The findings were published in a blog post on September 2, 2026. The ECB researchers noted that the increased use of SRTs has become more prevalent among European banks in recent years. They argue that this shift may have significant implications for bank profitability and shareholder returns.