Deposit-taking institutions suspend dividend payments due to COVID-19
Published:Friday | April 24, 2020 | 4:07 PM
Deposit-taking institutions will suspend the distribution of profits by way of declaring dividends in any manner (cash or stock) for the 2020 financial year until further notice.
Further, institutions will similarly postpone the distribution of any unpaid dividends declared for the 2019 financial year.
The Bank of Jamaica (BOJ) says the action, based on consultation, came in view of conserving capital and further enhancing licensees’ lending and loss absorption capacities.
Noting that it has been closely monitoring the impact of COVID-19 on the global and domestic financial system, the BOJ says the fundamentals of the Jamaican financial system continue to be strong with licensee’s capital and liquidity exceeding current regulatory requirements and established prudential norms.
In addition, the central bank says it stands ready to provide liquidity and other support necessary to ensure that financial institutions can continue to provide credit and other financial services to the public, limit the potential negative economic repercussions on the lives of ordinary Jamaicans and preserve confidence in the Jamaican financial system.
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