FRANKFURT, July 1 (Reuters) - The European Central Bank plans to let euro zone banks resume payouts to shareholders from October, barring a new economic slump, but it still expects them to show prudence, the ECB’s top supervisor Andrea Enria said on Thursday. “In the absence of materially adverse developments, we plan to repeal our recommendation as of the end of the third quarter of 2021 and return to reviewing dividends and share buybacks as part of our normal supervisory process,” Enria told European Union lawmakers. “We expect distribution plans to remain prudent and commensurate with banks’ internal capital generation capacity and with the potential impact of a deterioration in the quality of exposures, also under adverse scenarios.” The ECB imposed a de-facto ban on bank dividends when the coronavirus outbreak started in March 2020, later turning into a cap on payouts. (Reporting by Francesco Canepa; Editing by Alison Williams) Our Standards: The Thomson Reuters Trust Principles.