Reserve Bank of New Zealand agreed with the banks that during a period there will be no payment of dividends on ordinary shares.
Key notes
- Reserve bank of New Nealand says it is introducing a term lending facility.
- Agreed with banks that during period there will be no payment of dividends on ordinary shares.
- Agreed with banks that during period they should not redeem Non-CET1 capital instruments.
- Says TLF aims to complement govt’s business finance guarantee scheme.
- Says TLF to complement govt’s scheme by ensuring access to funding for banks at low interest rates for up to 3 years.
- Says currently engaging with banks on operational details of the scheme, with intention of launching first TLF operation in May.
- Restrictions on dividend payment, redemption of Non-CET1 capital instruments take effect from April 2.
More to come…
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