Singapore Asks Banks to Restrict Their Dividends1 min read . Updated: 29 Jul 2020, 05:47 PM IST
- To ensure a sufficient flow of loans so as to tackle the pandemic, Singapore central bank asked to cap to 2020 dividends at 60%
Singapore’s central bank has asked locally incorporated lenders to cap their 2020 dividends at 60% of last year’s levels, to ensure a sufficient flow of loans as they confront the downturn triggered by the pandemic.
The Monetary Authority of Singapore wants to “ensure the banks’ capital buffers remain ample in the face of significant uncertainties ahead, so they can sustain lending to the economy," MAS Managing Director Ravi Menon said Wednesday in a statement.
The MAS said its stress tests have showed that the local banks remain resilient, and it made the request as a pre-emptive measure. It asked the Singapore banks to offer shareholders the option of receiving 2020 dividends in scrip in lieu of cash.
Singapore banks including DBS Group Holdings Ltd. are due to start reporting their second-quarter results on Aug. 6.
This story has been published from a wire agency feed without modifications to the text.