Regulatory Alerts2024-02-08
Circular to Banks and Financial Institutions No. 2024-04 of February 8, 2024
The Central Bank of Tunisia issued Circular No. 2024-04 to govern dividend distributions for the 2023 fiscal year, mandating that banks and financial institutions maintain capital buffers above regulatory minimums. Institutions with end-2023 solvency and Tier 1 ratios exceeding regulatory floors by at least 2.5% may distribute up to 35% of their annual profits, while those exceeding floors by at least 2.5% and 3.5%, respectively, may distribute dividends without limit upon obtaining prior central bank approval. The directive requires explicit regulatory consent for entities failing to meet capital adequacy standards, explicitly excludes payment institutions, and enters into force upon publication.
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