Central Bank of Tunisia Sets Conditions for Dividend Distribution by Banks and Financial Institutions for 2024
The Central Bank of Tunisia (BCT) has published a new circular (No. 2025-02) outlining the conditions for dividend distribution by banks and financial institutions for the 2024 fiscal year. The aim is to ensure the solidity of the financial sector's own funds in a challenging economic context.
According to this circular, banks and financial institutions will be allowed to distribute up to 35% of their 2024 profits, provided their solvency and Tier 1 ratios (which measure their financial solidity) exceed the minimum regulatory levels of at least 2.5%.
Unlimited distribution will be possible only with the prior approval of the BCT and if these ratios exceed the regulatory thresholds of 2.5% and 3.5%, respectively.
Furthermore, any bank that fails to comply with prudential norms or whose annual accounts contain reservations from auditors will need to obtain specific authorization from the BCT before paying dividends.
It is worth noting that these rules do not apply to payment institutions.
This decision is part of a prudent approach aimed at preserving the stability of the Tunisian banking system while respecting international requirements, including the Basel standards and IFRS accounting standards.
