CBK Issues Statement on Distribution of Cash Dividends by Banks
A CBK statement affirmed that Kuwaiti banks may distribute cash dividends to their shareholders proportionate to the results and net profits for 2020, provided that such distribution should not affect the required capital adequacy ratio. This was announced in light of data revealing the resilience of Kuwaiti banks in terms of their solvency and showing that banks did not utilize their capital conservation buffer in 2020. To this end, CBK is reviewing financial statements of banks for the financial year-ended December 31, 2020 before approval thereof. CBK also affirmed the strength of the banking sector and its ability to overcome the ongoing COVID-19 crisis.
Related Link: Press Release
Keywords: Middle East and Africa, Kuwait, Banking, Dividend Distribution, COVID-19, Regulatory Capital, Basel, CBK
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