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WASHINGTON, March 25 (Reuters) - The Federal Reserve said on Thursday Royal Bancshares of Pennsylvania Inc (RBPAA.O), the parent of Royal Bank America and Royal Asian Bank, would need its written consent to declare or pay any dividends.
The Fed said the actions were part of a written agreement between Royal Bancshares of Pennsylvania Inc and the Federal Reserve of Philadelphia.
The Fed said the bank could not declare or pay any dividends or make any other payments that would reduce the bank’s capital without the Fed’s consent.
Marc Sanders, director of marketing for the Pennsylvania-based bank, said Royal has not paid a dividend since April 2008.
The bank will also have 60 days to submit a plan to improve its capital base, taking into account allowances for loan and lease losses, concentration of credit, and projected retained earnings, the Fed said.
Royal Bancshares of Pennsylvania is based in Narberth, Pennsylvania. (Reporting by Nancy Waitz, Editing by Kenneth Barry)