- For eligible banks, cash dividend distribution will be capped at a maximum of 50 per cent of total declared dividends, while the remaining portion must be paid in stock
- Effective from dividends to be paid for 2026
Bangladesh Bank has tightened dividend distribution rules for scheduled banks, barring cash dividend payments for lenders with paid-up capital below Tk2,000 crore as part of broader measures to strengthen capital buffers and financial stability.
For eligible banks, cash dividend distribution will be capped at a maximum of 50 per cent of total declared dividends, while the remaining portion must be paid in stock, according to the circular.
The directive will apply to dividend declarations for the financial year ending 31 December 2026 and onwards.
In a circular issued on Saturday, the Banking Regulation and Policy Department (BRPD) of the central bank said the revised dividend framework aims to safeguard depositors’ interests, reinforce banks’ financial capacity and ensure stability in the financial sector alongside fair returns for investors.
Bangladesh Bank said the measure is intended to strengthen banks’ internal capital generation capacity, improve risk absorption ability and enhance resilience amid domestic and global economic uncertainties.
All other provisions of earlier BRPD circulars will remain unchanged, the central bank said, issuing the instruction under Section 45 of the Bank Company Act, 1991.
