2012-03-22
Added · Updated
The Supervisor of Banks issued this regulation to impose additional restrictions on dividend distributions by banking corporations beyond those in the Companies Law. Banking corporations are prohibited from distributing profits if their accumulated surplus is negative, if they incurred losses in recent periods, or if they fail to forecast maintaining required capital-to-risk asset ratios. Furthermore, distributions from capital funds are banned, and distributions are restricted if non-financial assets exceed equity.
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Supervisor of Banks: Proper Conduct of Banking Business [5] (01/13) Distribution of Dividends by Banking Corporations Page 331- 1 ONLY THE HEBREW VERSION IS BINDING DISTRIBUTION OF DIVIDENDS BY BANKING CORPORATIONS Introduction and Definitions
Supervisor of Banks: Proper Conduct of Banking Business [5] (01/13) Distribution of Dividends by Banking Corporations Page 331- 2 ONLY THE HEBREW VERSION IS BINDING Distribution from capital funds
5. A banking corporation shall not undertake a distribution from credit differences
that were included in accumulated other comprehensive profit or from capital funds. The state of liquidity
6. A banking corporation shall not undertake a distribution if in its financial
statements, nonfinancial assets exceed its equity or if the proposed distribution will cause such a situation. Other restrictions
7. This directive does not replace other restrictions on certain banking corporations.
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Source: Bank of Israel — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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