Regulatory Alerts2023-07-06
Guideline on Restriction on Payment of Dividend
The Central Bank of Seychelles has revised its dividend payment procedure under Section 31 of the Financial Institutions Act 2004 to require a supporting analysis. Banks must demonstrate that capitalised expenses are written off, dividend payouts will not breach capital adequacy or liquidity thresholds, and provisions for impaired credits are sufficient. This updated requirement ensures that approved dividends preserve the institution's future capital and liquidity positions.
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