Banks using concessions will not be able to allocate more than 50% of profits for dividends

The Bank of Russia will require banks not to allocate more than 50% of profits for dividends in exchange for regulatory easing. This was announced by the director of the department of banking regulation and analytics of the Central Bank Alexander Danilov. He also said that the regulator is considering temporarily removing all surcharges for banks and giving them five years to recover.

“What are we asking for in return? This requirement is not to distribute more than 50% of profits if you use this schedule,” Mr. Danilov said at the Banks of Russia – XXI Century forum (quoted by RIA Novosti).

He noted that a separate condition for banks that enjoy relief will be a ban on the distribution of “old”, retained earnings.

During the forum, Alexander Danilov said that the Central Bank does not intend to extend the easing, “unless there is additional volatility,” since the banking sector is ready to cancel them in terms of the exchange rate and asset valuation. At the same time, the regulator intends to extend the relief on reserves for a year.

Recall that in May the Bank of Russia introduced easing until the end of the year on the limits of open currency positions in dollars and euros.

Daria Erozbek