[Infostock Daily=Reporter Park Jeong-do] Ahead of the year-end dividend season, financial authorities have begun talks with the banking sector on ways to reduce settlement dividends.
According to the Financial Supervisory Service on the 6th, the Financial Supervisory Service is considering temporarily reducing bank dividends under the COVID-19 situation.
A Financial Supervisory Service official said, "We are considering the need and detailed measures to limit dividends based on whether we can withstand the impact of each COVID-19 scenario."
Some oppose the plan, citing the local bank's better-than-expected management performance this year despite Corona, and that it could undermine shareholder value due to falling stock prices if dividends are restricted.
In fact, Hana Financial Group decided to make an interim dividend in August despite verbal recommendations from financial authorities that refrain from dividends. Hana Financial Group explained at the time, "We considered securing sufficient loss absorption capacity due to preemptive provisions and shareholder return policy.".
However, the banking sector seems to agree on the purpose and direction of preparing for the COVID-19 crisis.
The Financial Supervisory Service is also considering ways to strengthen supervision of capital adequacy, including limiting dividends, in the long term.
Reporter Park Jeong-do newface0301@naver.com
