Regulatory Alerts2021-01-19
Added · Updated
Circular on Distribution of Shareholder Dividends for 2021
The Central Bank of Jordan permits licensed Jordanian banks to distribute cash dividends to shareholders up to 12% of paid-up capital for the 2021 fiscal year. This authorization applies to banks that achieved profits in 2020 and ensures that dividend distributions do not violate regulatory capital adequacy or legal liquidity ratio requirements. The distribution remains subject to the board of directors' decision and the Central Bank's approval of the audited final financial statements.
10/3/1442 AH 7/6/2021 CE Circular to Jordanian Banks Operating in the Kingdom Subject: Distribution of Dividends to Shareholders for 2021
Greetings,
Further to our Circular No. (1/1/4693) 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 up to 12% of the bank's paid-up capital, provided that the bank has achieved profits for the year 2020, and such 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 approval of the Central Bank of the audited final financial statements in accordance with the rules.
Please accept our highest respect,
Governor Dr. Ziad Fries