March 24, 2020 / 7:18 AM / 5 days ago

Swedish FSA calls on banks to cancel dividends due to coronavirus

STOCKHOLM, March 24 (Reuters) - Sweden’s financial watchdog on Tuesday called on banks to cancel dividend payments and retain the cash to support the supply of credit at a time of stress caused by the coronavirus outbreak.

“The FSA will today send a letter to all banks and credit finance companies under the FSA’s oversight with a recommendation to their boards to immediately change their dividend proposals and that the spring AGMs decide not to pay out a dividend,” the Financial Supervisory Authority said in a statement.

“The aim is to ensure that these companies have continued good resilience against possible future credit losses and the capacity to maintain the supply of credit.”

Reporting by Stockholm Newsroom; editing by Niklas Pollard

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