RBNZ: Agreed with banks that during period there will be no payment of dividends on ordinary shares

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...