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MAS lifts dividend restrictions on local banks and finance companies

Atiqah Mokhtar
Atiqah Mokhtar7/28/2021 5:56 PM GMT+08  • 3 min read
MAS lifts dividend restrictions on local banks and finance companies
MAS says local banks and finance companies are in a strong position to support the economic recovery.
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On July 28, the Monetary Authority of Singapore (MAS) announced that dividend restrictions on locally-incorporated banks and finance companies headquartered in Singapore will not be extended.

In July and August 2020, MAS called on banks and finance companies respectively to cap their total dividends per share (DPS) for FY2020 at 60% of FY2019’s DPS, and offer shareholders the option of receiving the remaining dividends to be paid for FY2020 in shares in lieu of cash.

The dividend restrictions were a pre-emptive measure, introduced to ensure that local banks and finance companies maintain strong lending capacity to support the economy throughout the pandemic, given the significant uncertainties at that time.

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