Regulatory Alerts2025-01-29
Circular to Banks and Financial Institutions No. 2025-02 of January 29, 2025
The Central Bank of Tunisia mandates prudent dividend distribution policies for banks and financial institutions regarding their 2024 fiscal year profits, capping distributions at 35% of profit for entities whose end-2024 solvency and Tier 1 ratios exceed regulatory minimums by at least 2.5%, while allowing unlimited distributions subject to prior central bank approval for those exceeding minimums by 2.5% and 3.5%, respectively. Prior central bank approval is additionally required for entities failing to meet capital adequacy standards or those with qualified auditors' opinions on their 2024 financial statements. This circular, which excludes payment institutions and takes effect upon publication, aims to preserve capital buffers amid a challenging economic climate and ongoing convergence with Basel standards and IFRS norms.