The Bank of Ghana has directed banks and Specialised Deposit-Taking Institutions (SDIs) to desist from paying dividends to their customers until further notice.

This according to BoG is to ensure banks and the financial institutions are in good shape to assist customers throughout the pandemic period.

In a statement, BoG said the directive is aimed at absorbing any potential operational losses for banks and SDIs from the pandemic since the financial institutions are already relying on additional liquidity reliefs released by the central bank.

“In furtherance of the above, and to ensure that banks and SDIs are better able to support their customers throughout the COVID-19 pandemic, to absorb any potential operational losses for banks and SDIs from the COVID-19 pandemic, the Bank of Ghana now directs that all banks and SDIs desist from declaring and/or paying any dividends or distributing reserves to shareholders, and from making any irrevocable commitments regarding the declaration or payment of dividends to shareholders, until further notice.”

The Central Bank has assured banks and SDIs that it would continue to monitor the impact of the coronavirus on the financial sector and issue further directives as required.

Source: ABCNewsgh.com