Regulatory Alerts2012-03-22
Distribution of Dividends by Banking Corporations
The Supervisor of Banks issued this regulation to impose additional restrictions on dividend distributions by banking corporations beyond those in the Companies Law. Banking corporations are prohibited from distributing profits if their accumulated surplus is negative, if they incurred losses in recent periods, or if they fail to forecast maintaining required capital-to-risk asset ratios. Furthermore, distributions from capital funds are banned, and distributions are restricted if non-financial assets exceed equity.
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