Tag Archives: Dividend

Credit Suisse can weather Archegos’ fall, said the head of the IMF mission | Instant News


FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann / File Photo

ZURICH (Reuters) – Credit Suisse must be able to deal with the $ 4.7 billion loss from the Archegos hedge fund and the collapse of the $ 10 billion Greensill fund, without significant risk to the health of the Swiss financial sector from the episode, the IMF’s country mission. said the head.

Credit Suisse shares have fallen 25% within a month, with Switzerland’s second largest bank shaken from its collapsing exposure first to Greensill Capital and then Archegos Capital Management.

“Our assessment is that the incident was not systematic and manageable by Credit Suisse,” Mark Horton told reporters after the International Monetary Fund (IMF) published its report on Switzerland.

Credit Suisse took a number of actions; changing the management team, limiting dividends, and conducting external assessments of some developments that have occurred, “Horton said, Wednesday.

“We do not see this as seriously damaging Switzerland to either the financial sector or the economy as a whole,” he added.

Credit Suisse entered the coronavirus crisis with strong capital and a strong position, said Horton, adding that it had sufficient resources to manage the problem.

“This is seen as an internal problem that needs to be handled by the bank itself and has started to be done,” he said.

Reporting by John Revill; Edited by Alexander Smith

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BRIEF-Reserve Bank Of New Zealand Eases Some Dividend Restrictions & Expects Banks to Be Careful | Instant News


March 31 (Reuters) – Reserve Bank of New Zealand:

* KEEPING SOME DIVIDEND RESTRICTIONS AND EXPECTATIONS BANKS MUST BE CAREFUL

* THE CHANGES WILL ALLOW BANKS TO PAY MAXIMUM 50% OF THEIR INCOME AS DIVIDENDS TO THEIR SHAREHOLDERS

* THE 50% DIVIDEND RESTRICTION WILL REMAIN IN JULY 1, 2022

* THE NEW ZEALAND ECONOMY HAS BACK TO A STRONGER POSITION THAN ANTICIPATED OUTSIDE THE COVID-19 PANDEMIC

* AS SUCH, COMPLETE RESTRICTIONS ON DIVIDENDS ARE NOT NECESSARY AGAIN

* PROVIDED UNCERTAINTY, RIGHT TO KEEP SOME LIMITS TOWARDS BANK PAYABLE DIVIDENDS

* INTENDED NORMALIZATION OF DIVIDEND SETTINGS BY REMOVING THE RESTRICTIONS COMPLETELY AFTER 1 JULY 2022

* WRITING TO STATE REGISTERED TRADING BANKS TO UNDERSTAND THEIR DECISION

* AS IMPROVING ECONOMIC CONDITIONS, BUILDING STRONG CAPITAL MAKERS NEED TO BE PRIORITY

* BANK DECISIONS ON DIVIDENDS MUST TAKE AN ACCOUNT REQUIREMENTS TO MEET CAPITAL REQUIREMENTS HIGHER THAN CAPITAL RESERVE BANK CAPITAL REVIEW bit.ly/3uljmlZ Further company scope:

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New Zealand’s central bank is easing bank dividend restrictions | Instant News


March 31 (Reuters) – The Reserve Bank of New Zealand said on Wednesday that it was easing dividend restrictions imposed on retail banks at the height of the COVID-19 pandemic due to a stronger-than-expected economic rebound.

The changes will allow banks to pay a maximum of 50% of their income in dividends, with the 50% dividend cap remaining in effect until July 1, 2022, the central bank said in a statement. (Reporting by Rashmi Ashok in Bengaluru; Editing by Anil D’Silva)

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Credit Suisse warns of ‘significant’ losses from exiting hedge fund positions | Instant News


FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann // File Photo

ZURICH (Reuters) – Credit Suisse’s first-quarter results could suffer a material impact after the bank started exiting positions after a US-based hedge fund failed on a margin call it made, the bank said on Monday.

“While it is currently too early to calculate the exact size of the losses resulting from this exit, it could be very significant and material for our first quarter results,” the bank said.

Switzerland’s second-largest lender said the unnamed hedge fund failed to pay off margin calls made last week by Credit Suisse and other banks. Margin call is a request from the broker to add more money to the account to cover potential losses.

Following the failure of funds to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions, said Credit Suisse.

Credit Suisse said it would provide an update on the matter “in due time”.

The warning was a further blow to banks that are considering compensation for investors hit by a crash in funds linked to bankrupt financial firm Greensill.

Swiss lenders this month closed an estimated $ 10 billion in supply chain financial funds that bought paper money from Greensill. Of this, $ 3.1 billion has so far been repaid and more than $ 1.2 billion in cash remains in the fund, leaving more than $ 5 billion unpaid.

Reporting by John Revill; Edited by Riham Alkousaa, Kirsti Knolle

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Credit Suisse warns of ‘significant’ losses from exiting hedge fund positions | Instant News


FILE PHOTO: Swiss bank Credit Suisse logo seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS / Arnd Wiegmann // File Photo

ZURICH (Reuters) – Credit Suisse’s first-quarter results could suffer a material impact after the bank started exiting positions after a US-based hedge fund failed on a margin call it made, the bank said on Monday.

“While it is currently too early to calculate the exact size of the losses resulting from this exit, it could be very significant and material for our first quarter results,” the bank said.

Switzerland’s second-largest lender said the unnamed hedge fund failed to pay off margin calls made last week by Credit Suisse and other banks. Margin call is a request from the broker to add more money to the account to cover potential losses.

Following the failure of funds to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions, said Credit Suisse.

Credit Suisse said it would provide an update on the matter “in due time”.

The warning was a further blow to banks that are considering compensation for investors hit by a crash in funds linked to bankrupt financial firm Greensill.

Swiss lenders this month closed an estimated $ 10 billion in supply chain financial funds that bought paper money from Greensill. Of this, $ 3.1 billion has so far been repaid and more than $ 1.2 billion in cash remains in the fund, leaving more than $ 5 billion unpaid.

Reporting by John Revill; Edited by Riham Alkousaa, Kirsti Knolle

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