Tunisia: Bct Sets Conditions for Dividend Distribution in 2022

Tunis/Tunisia — The Central Bank of Tunisia (BCT) published, on Tuesday, a note (N °2023- 10 of March 7, 2023), setting the conditions for the distribution of dividends by banks and financial institutions for the year 2022.

Thus, the distribution of dividends will be made "within the limit of 35% of the profit of the year 2022, for banks and financial institutions with solvency ratios and Tier 1 (stable part of the capital of banks) stopped at the end of 2022, after deduction of dividends to be paid, exceed the minimum regulatory levels of 2.5%, at least," according to this note.

The BCT also specified that the distribution of dividends will be unlimited and after its prior approval, "for banks and financial institutions whose solvency and Tier 1 ratios at the end of 2022, after deduction of dividends to be paid, exceed the minimum regulatory levels of 2.5% and 3.5%, at least".

The BCT did not fail to note that this decision was taken, taking into account the global economic situation of the country and the continuing uncertainty on the economic and financial levels, as well as the exacerbation of the tensions among companies and individuals resulting from internal and external shocks (persistence of inflationary tensions, advent of the water risk and the Russian-Ukrainian crisis).

In addition to this, according to the Central Bank, there are the imperatives of the convergence process towards the Basel standards and the IFRS standards by the end of 2023.

"Thus, banks and financial institutions must pursue prudent dividend distribution policies in order to maintain and consolidate capital buffers above minimum regulatory levels," the BCT said.

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