• About Us
  • Privacy Policy
  • info@cryptonews24.co.uk
  • Saturday, January 23, 2021
    CryptoNews24
    Advertisement
    • Crypto News
      • Bitcoin
      • Ethereum
      • Ripple
    • Crypto Games
    • Blockchain
    • Finance
    • Fintech
    • Regulation
    • Blog
    No Result
    View All Result
    • Crypto News
      • Bitcoin
      • Ethereum
      • Ripple
    • Crypto Games
    • Blockchain
    • Finance
    • Fintech
    • Regulation
    • Blog
    No Result
    View All Result
    CryptoNews24
    No Result
    View All Result

    Shares of Singapore banks fall after regulator limits dividend payouts

    July 30, 2020
    in Finance
    2 min read
    Shares of Singapore banks fall after regulator limits dividend payouts
    0
    SHARES
    1
    VIEWS
    ShareShareShareShareShare

    Automated teller machines of the three Singapore-listed banks: OCBC, DBS and UOB.

    Munshi Ahmed | Bloomberg | Getty Images

    Shares of Singapore’s top three banks tumbled in early trade Thursday after the country’s financial regulator asked lenders to cap dividends this year in light of the economic uncertainty, due in part to the coronavirus pandemic.

    DBS Group Holdings and Oversea-Chinese Banking Corp — Singapore’s two largest banks — suffered losses of over 3% from the previous close. Their smaller peer, United Overseas Bank, fell by more than 2%.

    The three banks account for around one-third of the benchmark Straits Times Index, which dipped around 1.6% on Thursday.

    The country’s financial regulator and central bank, the Monetary Authority of Singapore, on Wednesday urged banks to cap their total dividends per share this year to 60% of last year’s amount.   

    It also said lenders can offer shareholders the option of receiving the dividends in the form of additional shares instead of cash.

    Investors need to keep in mind the strong capital positions … the customary prudence of the central bank and the fact that the 60% cap is not as severe as restrictions in some other jurisdictions.

    Krishna Guha

    equity analyst at Jefferies

    The announcement by MAS followed similar — and comparatively more stringent — moves by other financial regulators around the world. The Bank of England urged banks to scrap dividends this year, while Australia’s financial watchdog recommended banks and insurers pay less than half of their profits to shareholders for the rest of 2020.

    Singapore’s regulator said the dividend restrictions are a pre-emptive measure. It added that stress tests showed local banks remain resilient even under “adverse conditions consistent with a serious and prolonged public health crisis.

    The country is one of the worst-hit in Southeast Asia by the coronavirus. As of Wednesday, Singapore reported over 51,500 cases and 27 deaths, according to its health ministry.

    Its economy is forecast to shrink by between 4% and 7% this year — which would be the country’s worst recession since its independence in 1965.

    “MAS wants to ensure the banks’ capital buffers remain ample in the face of significant uncertainties ahead, so that they can sustain lending to the economy,” said Ravi Menon, managing director of MAS.

    Krishna Guha, equity analyst at Jefferies, said in a Thursday note that the dividend cap is likely to weigh on investor sentiment.

    “That said, investors need to keep in mind the strong capital positions … the customary prudence of the central bank and the fact that the 60% cap is not as severe as restrictions in some other jurisdictions,” he said.

    Credit: Source link

    ShareTweetSendSharePin
    Previous Post

    More Ether Holders Are in Profit Than There Are BTC Addresses in Total

    Next Post

    The insurance earth is flat. Digital conferences have helped prove that theory.

    Related Posts

    GameStop soars nearly 70%, trading briefly halted amid epic short squeeze
    Finance

    GameStop soars nearly 70%, trading briefly halted amid epic short squeeze

    January 22, 2021
    Trading volume is up from 2020’s breakneck pace as retail investors jump in
    Finance

    Trading volume is up from 2020’s breakneck pace as retail investors jump in

    January 22, 2021
    Stock futures tick lower to end record-setting week
    Finance

    Stock futures tick lower to end record-setting week

    January 22, 2021
    Bitcoin (BTC) price falls, wiping out $100B from entire crypto market
    Finance

    Bitcoin (BTC) price falls, wiping out $100B from entire crypto market

    January 21, 2021
    Load More
    Next Post
    The insurance earth is flat. Digital conferences have helped prove that theory.

    The insurance earth is flat. Digital conferences have helped prove that theory.

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Premium Content

    UK man makes last-ditch effort to recover lost bitcoin hard drive

    UK man makes last-ditch effort to recover lost bitcoin hard drive

    January 16, 2021
    Unintended consequences from stimulus could crush stocks: Jim Paulsen

    Unintended consequences from stimulus could crush stocks: Jim Paulsen

    January 20, 2021
    ETH Steadies At $1150 And Could Soon Outperform BTC

    ETH Smashed Key Resistance, Poised For A New ATH Rally

    January 19, 2021
    ENJ becomes the first gaming crypto to get regulatory approval in Japan

    ENJ becomes the first gaming crypto to get regulatory approval in Japan

    January 22, 2021
    Dow rises 100 points ahead of Biden’s inauguration, Netflix leads Nasdaq to a record

    Dow rises 100 points ahead of Biden’s inauguration, Netflix leads Nasdaq to a record

    January 20, 2021

    Welcome to cryptonews24, the number one source of news and information in the cryptocurrency sphere
    We have taken our time to bring together the most reliable and the most sought after source of news and information in the crypto sphere. From Startups, Fintechs,Sports,Health,Wealth,ICos, IEos,Exchanges, Wallets, to all other happenings in the crypto world.
    Subscribe to our telegram and twitter channel for minute by minute updates.
    Please contact us for your reviews, articles, marketing and any other cryptocurrency and blockchain related events

    What’s New Here

    Privacy-Centric Cryptocurrency Firo Suffers 51% Attack on Its Network – Altcoins Bitcoin News

    Privacy-Centric Cryptocurrency Firo Suffers 51% Attack on Its Network – Altcoins Bitcoin News

    January 23, 2021
    Digital Yuan Compatible with at Least Eight Chinese Bank Platforms

    Digital Yuan Compatible with at Least Eight Chinese Bank Platforms

    January 23, 2021

    Subscribe Now

    Loading

    © 2020 cryptonews24.co.uk - All rights reserved!

    No Result
    View All Result
    • Crypto News
      • Bitcoin
      • Ethereum
      • Ripple
    • Crypto Games
    • Blockchain
    • Finance
    • Fintech
    • Regulation
    • Blog

    © 2020 cryptonews24.co.uk - All rights reserved!

    • YAMYAM(YAM)$1.40-98.56%
    • bitcoinBitcoin(BTC)$31,631.00-0.62%
    • ethereumEthereum(ETH)$1,206.77-0.31%
    • tetherTether(USDT)$1.00-0.60%
    • PolkadotPolkadot(DOT)$17.340.44%
    • rippleXRP(XRP)$0.267636-1.30%
    • TrueHKDTrueHKD(THKD)$0.1391497.79%
    • cardanoCardano(ADA)$0.3395200.53%
    • chainlinkChainlink(LINK)$23.7313.37%
    • litecoinLitecoin(LTC)$136.74-3.07%