NRB asks BFIs to comply with strict rules to distribute their dividends
Summary
Nepal Rastra Bank has imposed strict guidelines on banks and financial institutions regarding dividend distribution, requiring compliance with capital and profit regulations.
Key Points
- Nepal Rastra Bank issued strict guidelines for dividend approval by banks and financial institutions.
- Dividends on non-cumulative preference shares can only be distributed from current fiscal year profits.
- Cash dividends must be declared from amounts exceeding minimum core capital and other capital funds.
- BFIs failing to maintain required capital buffers or loan dues face prohibition on dividend distribution.
