The bank’s problem is risk-weighted

Tuesday, 21 April 2020

Via Tom Ng at BlackPeak Capital:

Over the Easter break there was a fair amount of airtime on bank dividends.

Despite the ominous backdrop, local banks came out fighting to continue pumping out dividends. See for example, the Financial Times on April 9 “ANZ chief defends right of Australian banks to pay dividends”. APRA and RBNZ actions have subsequently tempered their enthusiasm.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.