APRA has revised its capital management guidance for banks and insurers, especially easing restrictions around paying dividends as institutions continue to handle the disruption caused by COVID-19.
After a slight drop in the uncertainty in economic outlook, APRA reviewed the financial projections and stress testing results. Considering these developments since April into account, APRA wrote to banks and insurers recommending them to maintain caution in planning capital distributions, which include dividend payments.
APRA also indicated that the Board should
- retain a minimum half of their earnings when making decisions on capital distributions.
- conduct regular stress testing to inform decision making and demonstrate the ongoing lending capacity.
- Utilize capital buffers to absorb the effects of stress and continue to lend to help households and businesses.
Disclaimer
There is no one left untouched by the charm of the multibillion-dollar global boom in cannabis. Its glorious journey from a criminalized drug to being used in over 20 countries for treating medical conditions.
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Find out the drivers for the rise in cannabis stock rates Even though the cannabis sector is in its growing phase, Australian cannabis stocks have already started to rise actively due to a hastily increasing patient base, and a legislative landscape that is gradually beginning to liberalise.
Outreach and future of cannabis stocks As countries liberalise regulation for medical and recreational use of cannabis, it is predicted that the industry would grow sharply in upcoming years The global cannabis market stands currently at around $8 billion and it is expected that the hemp derived CBD market to hit approximately $22 billion by 2022.
Key Players in the sector Althea Group Holdings Limited (ASX: AGH) and Cann Group Limited (ASX: CAN) are amongst the top players. Other Australia cannabis market players are- MGC Pharmaceuticals Ltd (ASX: MXC), Elixinol Global Limited (ASX: EXL), THC Global Group Limited (ASX: THC), AusCann Group Holdings Limited (ASX: AC8)
