The Fed still has not directed banks to suspend shareholder payouts - but here's a central bank that has

Author: Eamonn Sheridan | Category: Central Banks

The Reserve Bank of New Zealand is restricting all locally-incorporated banks from paying dividends on ordinary shares 

  • is also preventing them from redeeming bond issues
The restrictions take effect immediately, 2 April, and will stay in place until "the economic outlook has sufficiently recovered". That is, says the RBNZ, "until further notice".

The RBNZ placed the restriction today alongside its announcement of more support for banks:
  • introducing a Term Lending Facility (TLF), a new longer-term funding scheme
  • to help support the Government's Business Finance Guarantee Scheme to help promote lending to businesses
  • TLF is similar to the recently announced, Term Auction Facility (TAF), and both provide liquidity to the banking system
(Details, as they are, there will be further to come) are here at the RBNZ site 

Reserve Bank Governor Adrian Orr

The Reserve Bank of New Zealand is restricting all locally-incorporated banks from paying dividends on ordinary shares 

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