MAS reviewing banks' capital plans, including dividend payouts

Despite turmoil, financial sector is unlikely to contract from a year ago, and should still create jobs

Published Thu, Jul 16, 2020 · 09:50 PM

Singapore

AMID "substantial uncertainty" over the global economic outlook as corporate defaults are set to rise, the Singapore regulator is now in "close discussions" with Singapore banks on their capital management ahead, which would include conversations around - though not limited to - restricting dividend payouts.

Speaking to reporters at the release of the central bank's annual report, Monetary Authority of Singapore's (MAS) managing director Ravi Menon said banks' capital management should be approached "from a position of strength".

"We should start early and not wait until the capital position starts lookin…