Singapore c.bank urges finance firms to cap dividends

SINGAPORE, Aug 7 (Reuters) - The Monetary Authority of Singapore said on Friday it had urged finance companies incorporated in the city-state to cap their dividends in order to improve their ability to support the credit needs of businesses and consumers.

The central bank urged finance companies to cap their total dividends per share for the fiscal year 2020 at 60% of the previous year's level. Finance companies are also encouraged to offer shareholders the option of receiving the dividends to be paid for 2020 in scrip in lieu of cash, it added.

The move follows similar advice from the MAS last week for local banks.

(Reporting by Aradhana Aravindan in Singapore Editing by Gareth Jones)