Banking and Finance

Stop paying dividend to customers, shareholders – BoG orders banks, financial firms

1 Mins read

The Bank of Ghana (BoG) has directed financial institutions in the country to desist from the payment of dividend of whatever form to their customers.

According to the Central bank, the move is to ensure that the banks are in good shape to assist customers through the period of the pandemic.

“In furtherance of the above, and to ensure that banks and SDIs are better able to support their customers throughout the COVID-19 pandemic, to absorb any potential operational losses for banks and SDIs from the COVID-19 pandemic, the Bank of Ghana now directs that all banks and SDIs desist from declaring and/or paying any dividends or distributing reserves to shareholders, and from making any irrevocable commitments regarding the declaration or payment of dividends to shareholders, until further notice.

“For the avoidance of doubt, shareholders in this context means holders of Common Equity Shares (CETI) and Additional Tier I (AT1) capital instrument of banks and SDIs,” the bank said.

President Akufo-Addo has  noted that his administration was compelled to lift the restriction on movement in Greater Accra, Kasoa and Greater Kumasi because consistently, test results over the last three weeks have remained constant in terms of infection rate, death rate, persons who are moderately ill, amongst others.

“It is that constancy, that robustness of the data that we have in Ghana, that is inspiring our decisions,” President Akufo-Addo said.

“As President of this country, I cannot also ignore the impact that this lockdown is having on several constituencies of our country, specifically those who are a very important part of the Ghanaian equation, the people who live, if you like, ‘hand-to-mouth,’ informal workers who need to have a day out in the market one form or the other for their families, who are having a lot of difficulties,” President Akufo-Addo added.

Related posts
AfricaBanking and FinanceEntrepreneurs

Ousted Credit Suisse boss Tidjane Thiam to launch ‘blank cheque’ venture

1 Mins read
Former Credit Suisse chief executive Tidjane Thiam is said to be launching a so-called blank cheque firm, a year after he was…
Banking and Finance

Standard Chartered Holds First Draw Of Season Of Surprises Campaign

1 Mins read
Standard Chartered Bank Ghana Limited has held its first draw of the Season of Surprises promotion in Accra. The Season of Surprises…
Banking and FinancelocalTechnology

MTN Ghana drives benchmark index higher

1 Mins read
market Summary The benchmark index advanced by 11.74 points (+0.60%) to close at 1,967.52 with a 1.34% year-to-date return as a result…

Leave a Reply

Your email address will not be published. Required fields are marked *