Bangladesh Bank has restricted banks on declaring dividend before 30 September this year and also on declaring more than 30 per cent dividend in order to reduce the liquidity pressure in banking sector.
The Department of Off-site Supervision of the central bank issued these directives to all scheduled banks through a circular on Monday.
It said that the banks can declare highest 30 per cent dividend including a 15 per cent cash as per their ability maintaining some other obligations.
“The cash dividend should not be distributed before 30 September in 2020”, said the circular.
It said the government has announced different stimulus packages following the coronavirus outbreak in order to overcome the pressure on different indicators of the economy. The packages are now under implementation.
The Bangladesh Bank already introduced two major refinancing schemes to mobile easy funds to implement the stimulus packages for the large industries and small and medium enterprise (SME) sector, the circular mentioned.
It also said it is essential for the banks to keep their dividend undistributed for strengthening their capital base so that they could make due contribution to the economy in the current situation through maintaining adequate liquidity to absorb the pressure in the banking sector.
The BB circular said the new policy was introduced considering the return of the shareholders for the year ending of 2019.