APRA removes limits on banks’ dividends

Shareholders of banks and insurers can expect better dividends next year after a financial regulator removed limits designed to ensure the institutions’ stability during the pandemic.

The Australian Prudential Regulation Authority on Tuesday said it would from January 1 remove its requirement that the companies retain at least half their earnings.

APRA imposed the limit in July, which left shareholders of banks and insurers with greatly reduced dividends. 

The regulator said the economic outlook had improved, and people who had loan repayments deferred had restarted the repayments.

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