Egypt's central bank prevents banks from distributing cash dividends to shareholders

CAIRO – 12 January 2021: The Central Bank of Egypt (CBE) decided not to allow banks to make cash dividends from annual or retained profits that are distributable to shareholders.

CBE attributed the decision in a periodic book on its website to strengthen the capital base of banks to face potential risks, as a result of the continuing crisis of the spread of the coronavirus.

The Central Bank stated that it allowed distributions to be made to employees, as well as the payment of board remuneration for the fiscal year 2020.

Earlier in January, CBE issued new instructions regarding the management of operation risks at banks working in the Egyptian market.

The CBE also said that it is continuously following up on and applying international practices in the field of banking supervision in the Egyptian banking system, through regular observation of the most important standards outlined by the Basel Committee.

This comes in addition to its work on updating and improving the supervisory instructions for implementing decisions and developments under the Basel II and III accords.