Regulatory Alerts2025-08-27
Banks and Trust Companies (Payment of Dividends) Regulations 2025
The Central Bank of The Bahamas issued the Banks and Trust Companies (Payment of Dividends) Regulations 2025 to mandate prior approval or notice for dividend distributions by supervised financial institutions. Commercial banks and other regulated entities must secure the Bank's written consent or file a seven-day declaration before paying dividends, particularly when payouts exceed prior-year net profits, threaten minimum capital adequacy, or create negative retained earnings. Empowering the Inspector to restrict distributions during liquidity or capital shortfalls, these regulations revoke the 2005 rules and enforce stricter financial stability standards.
Share