Thai central bank tells lenders to freeze dividend payments

Banks are required to prepare capital management plans for the next 1-3 years.

The Bank of Thailand (BOT) has asked banks not to pay interim dividends for 2020, as part of its requirements for lenders, to prepare capital management plans for the next 1-3 years, given the widespread impact of the ongoing COVID-19 crisis to asset quality.

In a statement, BOT Governor Wirathai Santiprapob noted that commercial banks’ asset quality remains at risk of being affected by the high uncertainty as a result of the ill-effects of the pandemic to businesses and the general public.

Santiprapob further asked banks to take into account future economic trends as well as the potential of debtors in doing business after the pandemic.

The BOT has also asked banks to stop repurchasing shares to maintain a strong capital level and to support continued business operations.

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