Regulatory Alerts2021-01-20
Added · Updated
Circular on Distribution of Dividends to Shareholders for 2021
The Central Bank of Jordan permits licensed banks in the Kingdom to distribute cash dividends to shareholders up to 12% of paid-up capital, provided the banks achieved profits for 2020 and the distribution does not violate regulatory capital adequacy or legal liquidity ratio requirements. This distribution remains subject to the bank's board of directors' decision and the Central Bank's approval of the audited final financial statements.
In the Name of Allah, the Most Gracious, the Most Merciful
(Central Bank of Jordan Logo) (Jordanian Centenary Logo)
Ref: 1228 / 3 / 10 Date: 7 / 6 / 1442 AH Corresponding to: 20 / 1 / 2021 AD
Circular to Jordanian Banks Operating in the Kingdom Subject: Distribution of Dividends to Shareholders for 2021
Greetings,
Following our Circular No. (4693/1/1) dated 9/4/2020, and in light of international and local economic developments and the comfortable liquidity and solvency levels enjoyed by licensed banks in the Kingdom, and with the Central Bank's commitment to maintaining and enhancing these levels, it has been decided to allow licensed Jordanian banks to distribute cash dividends to shareholders not exceeding 12% of the bank's paid-up capital, provided that the bank has achieved profits for the year 2020, and that the distribution of dividends does not violate any requirements of the Law and Instructions regarding regulatory capital adequacy ratios, legal liquidity ratios. Of course, the distribution of dividends is subject to the decision of the bank's board of directors and the Central Bank's approval of the audited final financial statements in accordance with the standards.
Please accept our highest respect,
Governor Dr. Ziad Fariz
P.O. Box 37, Amman 11118, Jordan • Tel: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo
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