Australian regulator eases dividend rules on banks, insurers | Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis

Australian regulator eases dividend rules on banks, insurers

They have been told to maintain caution on capital distributions.

The Australian Prudential Regulation Authority (APRA) has eased restrictions on paying dividends for banks and insurers as the sectors manage the disruption caused by the pandemic.

The update on its capital management guidance replaces the recommendation released in April saying that banks and insurers must consider delaying decisions on dividends.

APRA has reviewed banks’ and insurers’ financial projections and stress testing results and has told them to maintain caution in planning capital distributions, including dividend payments.

For the remainder of the calendar year, both sectors should aim to retain at least half of their earnings when deciding on dividend reinvestment and other initiatives to counteract capital declines.

They should also regularly conduct stress tests to show ongoing lending capacity, utilise capital buffers to absorb stresses, and continue their support for households and businesses.

Get Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.
It opens up new revenue models and lowers the cost-to-serve.
Bypassing credit cards, the payment instalment options prove to be attractive.
More banks and institutions are exploring its use for payments and cross-border transfers.