THIS past week, the Monetary Authority of Singapore (MAS) dealt a blow to investors by calling on the local banks to cap their dividends.
"We are fortunate that banks in Singapore entered the Covid-19 pandemic with strong capital positions. All the same, 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 MAS managing director Ravi Menon, in a statement on July 29.
Specifically, MAS wants the local banks to cap their dividends per share for FY2020 at 60 per cent of what they paid for FY2019. MAS also wants the banks to offer their shareholders the option of receiving their FY2020 dividends...