Australian banks can pay reduced dividends

Lower NIM: A file picture showing a man walking past a branch of the Commonwealth Bank of Australia in central Sydney. CBA says its NIM had fallen from the June quarter — Reuters

SYDNEY: Australia’s big banks will be allowed to pay shareholder dividends this year, albeit at a reduced level, the prudential regulator said yesterday.

Payouts will be permitted as long as banks continue to provide credit to the economy and conduct robust stress tests, the Australian Prudential Regulation Authority (Apra) said in a statement.