MAS urges finance firms to ease dividends after pressing on banks

They are also suggested to offer shareholders the option of receiving FY2020 dividends in scrip.

The Monetary Authority of Singapore (MAS) has also urged local finance companies to cap their total dividends per share (DPS) for FY2020 at 60% of FY2019’s level, according to a statement.

This follows after MAS requested the same for banks a week earlier as a measure to withstand the ongoing impact of the pandemic.

Also read: Singapore banks' shares dive after MAS calls for dividend cap

Financial firms are also encouraged to offer shareholders the option of receiving the dividends to be paid for FY2020 in scrip in lieu of cash.

“Capital positions of the finance companies remain strong and the dividend restriction is a pre-emptive measure to bolster the finance companies’ ability to continue to support the credit needs of businesses and consumers in the current business environment,” MAS said.

It also adds that the dividend restriction for finance companies balances the objective of capital conservation to sustain lending with the interests of shareholders who may rely on this income.

Also Read

ESR-LOGOS secures $225m and JPY15.5b sustainability-linked term loans

Singapore leads SEA in FinTech funding

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!

I want to download the media kit