Why do most banks in Europe impose strict legal restrictions on the amount of dividend payments during

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Why do most banks in Europe impose strict legal restrictions on the amount of dividend payments during the amortization of loans? Is this restriction appropriate in the case of small firms?

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Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

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Question Posted: Apr 16, 2024 11:00 AM

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In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the loans? Is this restriction appropriate in the case of small firms?
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Why do most banks in Europe impose strict legal restrictions on the amount of dividend payments during

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Banks in Europe often impose legal restrictions on dividend payments during the amortization of loans to safeguard the banking systems stability and f...View the full answer

Foundations Of Finance

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