Economics

Stop dividend payouts, prepare for the worst, IMF tells banks

The financial counsellor of the IMF said that banks should rebuild capital buffers to prepare for shocks

The International Monetary Fund has told banks to stop payouts to shareholders during the Covid-19 crisis to build capital buffers against market shocks given the uncertainty surrounding the economic impact the pandemic will cause.

IMF financial counsellor Tobias Adrian said lenders should prepare for the worst during a 22 May live-streamed interview over Twitter.

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