KUALA LUMPUR: Malaysia’s three biggest banks could see their dividend payouts affected by Bank Negara Malaysia’s move that designate them as Domestic Systemically Important Banks (D-SIB). Affin Hwang Capital said being a D-SIB means Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd and Public Bank Bhd would need the central bank’s approval before paying out dividends to their shareholders. Bank Negara had on February 5 issued a policy document on the D-SIB framework. D-SIBs refer to banks whose distress could potentially cause considerable disruption to the domestic financial system and the wider economy. The applicable HLA requirement for Maybank and CIMB are at 1.0 per cent, while Public Bank at 0.5 per cent of risk-weighted assets at consolidated level.

Source: New Strait Times February 06, 2020 07:52 UTC