Regulatory Alerts2025-03-13
Added
DOS Circular No. 01: Dividend Declaration Policy for Banks
The Department of Off-Site Supervision of Bangladesh Bank establishes dividend distribution guidelines for all scheduled banks for the fiscal year ending December 31, 2025. Banks must meet strict eligibility criteria, including a maximum 10% classified loan ratio and no outstanding regulatory penalties, to declare dividends. The circular sets maximum payout ratios based on post-tax profit: 50% for banks maintaining a 15.0% capital conservation buffer, 40% for those between 12.5% and 15.0%, and restricts banks below 12.5% to stock dividends only. This policy supersedes previous circulars dated February 7, 2021, and March 16, 2021, for the 2025 fiscal year, while retaining specific provisions for the 2024 fiscal year.
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