New Zealand banks agree dividend suspension with RBNZ
Central bank launches new funding facility and asks banks to stop redeeming non-CET1 instruments
New Zealand’s lenders have agreed with the country’s central bank to suspend dividend payments on ordinary shares and will not redeem non-common equity tier 1 instruments.
Reserve Bank of New Zealand deputy governor Geoff Bascand said today (April 2) the agreement would further support financial stability during the coronavirus pandemic.
The RBNZ also announced the launch of a new longer-term lending facility to support bank lending.
The restrictions on dividend payments and non-CET1
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