These moves have prompted the question as to whether banks in Asia, including Malaysia, may be the next to have to do so as the economic fallout from the coronavirus outbreak deepens.
(Apr 9): Bank dividends came into focus last week after major UK lenders, including HSBC, Barclays and Royal Bank of Scotland, caved in to regulatory pressure and agreed to halt dividends and buybacks this year, while also cancelling outstanding 2019 dividends, in a bid to preserve capital amid the Covid-19 crisis.
The UK banks’ move follows that of European banks a week earlier. In the UK, the Bank of England also expects lenders to axe bonuses to senior executives this year.
