2020-04-06

G4/2020: Dividends and Bonus Payments in Response to COVID-19

The Prudential Authority has issued guidance requiring South African banks to conserve capital by suspending ordinary share dividends and cash bonuses to executives and material risk takers throughout 2020. This directive prioritizes capital retention to ensure financial institutions maintain funding capacity for the real economy while absorbing pandemic-related losses. Bank boards must align remuneration policies with risk appetite, take appropriate action on declared dividends and variable pay, and ensure ongoing compliance with prudential regulations.

South Africa

South African Reserve Bank

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