BoG directs banks to stop paying dividends to shareholders

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The Bank of Ghana (BOG) has directed Banks and Specialised Deposit-Taking Institutions, SDI’s in the country to cease declaring or paying dividends to shareholders until further notice.

The Central Bank said this is to ensure that banks and SDIs are better positioned to support their customers throughout the COVID-19 pandemic and to absorb any potential operational losses for banks and SDIs from the crisis.

A statement signed by the Secretary to the Bank, Sandra Thompson said: “to ensure that banks and Special Deposit Institutions are able to support their customers throughout the COVID-19 pandemic, the BOG directs all banks and SDIs to 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.”

The BoG has however assured banks and SDIs that it would continue to monitor the impact of the coronavirus on the financial sector.

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