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2026-03-15

SPCD Circular No. 05: Dividend Declaration Policy for Banks

Bangladesh Bank has issued SPCD Circular No. 05 to amend the Bank Licensing Guidelines, Capital Adequacy Requirements, and Company Secretary appointment rules in alignment with the revised Dividend Declaration Policy No. 07 and Basel III implementation. The circular mandates all commercial banks to adopt the newly approved 'Dividend-K' framework for dividend distribution and regulatory compliance. It formally withdraws the Board of Directors' prior approval dated 13 June 2025, thereby establishing the updated policy as the sole governing directive.

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Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh www.bb.org.bd

Circular No. 05 dated: --------------------- SPCD Circular No. 05 Dated: ---------------------

Head Office / Deputy Governor Bangladesh Bank Head Office

Dear Sir,

Regarding: Dividend Declaration Policy for Banks.

Pursuant to the approval of the Board of Directors of Bangladesh Bank dated 13 June 2025, the following is issued:

  1. The existing Bank Licensing Guidelines, Capital Adequacy Requirements for Banks, and the existing guidelines for the appointment of Company Secretaries of Banks, have been reviewed by the Board of Directors of Bangladesh Bank in light of Dividend Declaration Policy No. 07 (Revised) for Banks. Accordingly, a new circular has been issued to amend these guidelines.

  2. In order to ensure adequate capitalization and strengthening of the financial position of banks, the Bangladesh Bank has issued a comprehensive circular to the commercial banks regarding the implementation of the Basel III Capital Adequacy Framework (BCF). This has been implemented under SPCD Circular No. 03 dated 24 December 2025.

  3. In this regard, the Board of Directors of Bangladesh Bank has approved a new circular under point 02 of Dividend Declaration Policy No. 07 (Revised) to issue a new circular titled 'Dividend-K' for the Head Office / Deputy Governor / WMBI of all banks. This circular is issued as SPCD Circular No. 05 and Circular No. 01 dated 14 January 1432 (Bangla Calendar) for the implementation of the new circular.

  4. The remaining approval of the Board of Directors of Bangladesh Bank dated 13 June 2025 is hereby withdrawn.

Board of Directors, (Chairman) Deputy Governor (SPCD) (Digitally Signed) Ref: 9530050 15 June 2026 01 Poush 1432

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