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Stock impact report

UPDATE 2-Brazil's central bank restricts bank dividends, share buybacks [Reuters]

Banco Santander, S.A. Sponsored ADR (Spain) (SAN) 
Company Research Source: Reuters
UPDATE 2-Brazil's central bank restricts bank dividends, share buybacks (Adds loan amount renegotiated) BRASILIA/SAO PAULO, April 6 (Reuters) - Brazil’s central bank has barred financial institutions from paying dividends beyond the minimum legal requirement through Sept. 30 and initiating new share buyback programs, in a move to strengthen liquidity amid the coronavirus pandemic. The central bank, the industry’s main regulator, said the change is designed to give banks the flexibility to keep extending credit and absorb potential future losses as the outbreak hits Latin America’s largest economy. Banks are also forbidden to raise executive compensation or create new share repurchase programs without consulting the central bank. Authorized share buyback programs are restricted to 5% of outstanding shares. The European Central Bank (ECB) took similar measures last month, asking banks to skip dividend payments and share buybacks and use their profits instead to support the economy. Spai Show less Read more
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