Bankinter shareholders are the only people that will be hurt by the Bank of Spain's decision to limit dividend payment to 25 euros in cash. Bankinter, led by president Dolores Dancausa, is the only bank not paying a dividend in shares (also called script dividend).
The Spanish Banking Association criticized the blanket decision yesterday because script dividend will be used widely, disappointing some banks and shareholders.
Besides the fact that issueing script dividend is a way to create capital reserves, the Bank of Spain should have limited its rule for specific cases and respected other banks' wishes to compensate shareholders in a way they think is prudent and fair.
