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Fed to lift restrictions on bank dividends, share buybacks for 'most firms' after June stress test

Published 03/25/2021, 04:35 PM
Updated 03/25/2021, 04:40 PM
© Reuters. FILE PHOTO: The Federal Reserve building is pictured in Washington, DC

WASHINGTON (Reuters) - The U.S. Federal Reserve announced on Thursday it would likely remove income-based restrictions on bank dividends and share buybacks for "most firms" after its June stress tests.

© Reuters. FILE PHOTO: The Federal Reserve building is pictured in Washington, DC

The central bank said that all large firms that can show they can stay above regulatory minimum capital requirements after undergoing the next stress test will no longer face those restrictions, which were imposed at the onset of the pandemic to help banks build up reserve cushions. Companies that see their levels fall below minimums during the test will have to adhere to the restrictions through Sept. 30.

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