Reserve Bank Deputy Governor Geoff Bascand. Photo / FileNew Zealand's banks will now be allowed to pay up to 50 per cent of their earnings out in dividends after the Reserve Bank eased restrictions. But today the Reserve Bank said economy activity had rebounded enough to ease the restrictions. "Given the uncertainties ahead, it is appropriate to retain some restrictions on the dividends that banks can pay." The Reserve Bank has written to the banks to inform them of the decision while asking that the banks be prudent in determining how much they pay to shareholders.

Source: New Zealand Herald March 30, 2021 22:18 UTC