The Federal Reserve is reported to announce by the end of September whether it will continue prohibiting bank stock buybacks and limiting dividends into the fourth quarter. This follows June’s instruction from the Federal Reserve when it told the biggest US. banks that they could not increase dividends or resume buybacks through at least the third quarter as uncertainty over the course of a global pandemic weigh on lenders. This followed the Fed’s review of the effects of the coronavirus on the economy and financial system that uncovered potential risks and had put the fate of their dividends in question. The Fed “is taking action to assess banks’ conditions more intensively and to require the largest banks to adopt prudent measures to preserve capital in the coming months,” Fed Vice Chairman for Supervision Randal Quarles said in the June statement. “The banking system remains well-capitalized under even the harshest of these downside scenarios.” Market implications The banking sector has been under pressure since August as the KRE index which remains in the bearish territory on the daily chart. However, the earnings results were solid in the last quarter and risk appetite remains elevated into the fourth. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/USD: Recalls familiar area near 0.7300 after a volatile day FX Street 2 years The Federal Reserve is reported to announce by the end of September whether it will continue prohibiting bank stock buybacks and limiting dividends into the fourth quarter. This follows June's instruction from the Federal Reserve when it told the biggest US. banks that they could not increase dividends or resume buybacks through at least the third quarter as uncertainty over the course of a global pandemic weigh on lenders. This followed the Fed's review of the effects of the coronavirus on the economy and financial system that uncovered potential risks and had put the fate of their dividends in question. The Fed “is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.