BCT issues circular to financial institutions outlining conditions for 2023 dividend distribution

The Central Bank of Tunisia (BCT) has issued a circular to banks and financial institutions on Thursday, outlining the conditions regarding the distribution of dividends for the fiscal year 2023. According to the circular, dividend distribution will be capped at 35% of the 2023 fiscal year profit for banks and financial institutions with solvency and Tier 1 ratios determined as of the end of 2023, after deducting dividends to be paid, exceeding the minimum regulatory levels by at least 2.5%. Dividend distribution will be unlimited, subject to prior approval from the BCT, for banks and financial institutions with solvency and Tier 1 ratios determined as of the end of 2023, after deducting dividends to be paid, exceeding the minimum regulatory levels of 2.5% and 3.5% respectively. Prior approval from the BCT is required for any dividend distribution by banks and financial institutions that do not meet, as of the end of 2023, the prudential standards for capital adequacy outlined in Articles 50, 51, and 52 of the aforementioned Circular No. 2018-06. This circular does not apply to payment institutions. Source: Agence Tunis Afrique Presse