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End of dividend shackles a Christmas gift for bank bulls – The Australian Financial Review

In yet another sign of Australia’s impressive COVID-18\9 recovery, the prudential regulator will no longer cap bank dividends. But how hard will they bounce?

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Back in March, when the country was locked down and home and business loan deferrals were given out like confetti, the potential for a recession to rock the foundation of the banking system was very real.
As it turned, Australias success in tackling the virus has cushioned the blow. The economy is performing better than anyone could have expected six months ago, loan deferrals are rolling off in an orderly fashion and bank capital levels have strengthened, in part due to APRAs actions.
The regulator…

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