MAS calls on banks to cap dividends for FY20 to 60% of FY19

DBS, OCBC and UOB shareholders will receive lower dividends for this year, after the Monetary Authority of Singapore (MAS) calls on the local banks to cap their dividend payout to 60% of what was paid for FY2019.

While the local banks’ capital positions are strong, the dividend restrictions are a pre-emptive measure to bolster their resilience and capacity to support lending to businesses and individuals through an uncertain period ahead for Singapore’s economy, said MAS in its July 29 statement.