US Federal Reserve says dividend and buy-back limits for most banks will end on June 30

Author: Eamonn Sheridan | Category: Central Banks

Banks not subject to stress-test in 2021 will no longer be subject to the restrictions from end-June 

  • banks with capital below that required by the 2021 stress tests will be subject to restrictions until Sept. 30

Background to this is that the Fed placed restrictions on bank payouts last (northern) summer, citing the need to conserve capital during the coronavirus-induced downturn:
  • banned buybacks
  • capped dividends

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