APRA’s impact on Macquarie bank and paying their dividends

I was just curious to get your opinion on the likelihood of Macquarie paying their dividend next month with APRA pressuring the big 4 to cut dividends ?

A: APRA’s directive applies to all banks and insurers.

The main test banks need to pass is a stress test. This means agreeing downside stress scenarios with APRA, and then passing the test.

Macquarie is very well capitalised, so provided they have time to develop the scenarios with APRA, my guess is that they will pay a dividend. If the three majors choose to suspend their interim dividends, that will put pressure on Macquarie to follow suit. You can read my thoughts here on how this might play out: https://switzer.com.au/the-experts/paul-rickard/boq-suspends-dividend-will-the-majors-follow/?utm_source=newsletter&utm_medium=email&utm_campaign=20200409


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