Central Bank of Tunisia Sets Conditions for Dividend Distribution
The Central Bank of Tunisia (BCT) has published circular n° 2026-3, outlining the conditions for banks and financial institutions to distribute dividends for the 2025 fiscal year. The message is clear: caution is paramount.
Objective
The goal is to force banks to keep a portion of their funds (their own capital) to remain solid in the face of crises and align with international standards, such as IFRS norms.
New Dividend Scale
From now on, to determine if a bank can reward its shareholders, everything depends on its solvency ratios:
- Minimum Service (35%): If a bank is relatively solid (with a 2.5% safety margin above regulatory thresholds), it can distribute its profits, but not exceeding 35%.
- Total Green Light (under conditions): To distribute more than 35%, the bank must demonstrate exceptional financial health (a 2.5% solvability margin and 3.5% Tier 1) and, above all, obtain the prior approval of the BCT.
Strengthening Surveillance and Compliance
Regardless of the thresholds mentioned above, the prior approval of the BCT is mandatory in the following cases:
- Non-compliance with prudential standards for own funds adequacy at the end of the 2025 fiscal year.
- Existence of reservations or observations issued by auditors in their opinion on financial statements.
Procedure
The concerned institutions must submit their authorization request to the BCT no later than 15 days before the scheduled date for the ordinary general assembly. It is specified that this circular enters into force immediately upon publication, but it does not apply to payment institutions.
