WELLINGTON, New Zealand – New Zealand’s central bank said it would lift dividend payment restrictions on banks imposed at the start of the pandemic as the economy remains strong despite headwinds.
The restrictions will be fully lifted on July 1, the Reserve Bank of New Zealand said on Thursday. The restrictions were lifted subject to no significant deterioration in economic conditions.
Banks were initially prevented from paying dividends, which was reduced to a 50% limit in March last year.
“Underlying strength remains in the economy, supported by a strong labor market, solid fiscal balance sheets, ongoing fiscal support and strong trade conditions,” Deputy Governor Christian Hawkesby said in a statement. “However, the economy still faces headwinds, including heightened global economic uncertainty, cost pressures and low consumer confidence.”
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