Recent Developments
The Banks Association of Turkey published a public announcement
(''Announcement'') on January 29,
2021 regarding an assessment by the Banking Regulatory and
Supervisory Authority (''BRSA'')
on banks' dividend distributions.
The BRSA recommended that banks with a core capital adequacy
below 12% not distribute dividends in respect of the financial year
2018. Also, the BRSA requested that banks do not make dividend
distributions in a manner that would cause cash outflow in respect
of the financial year 2019.
As to the financial year 2020, The BRSA stated that it would be
advisable for banks not to distribute dividends generated in
financial year 2020 or from reserves generated prior to 2020 but
that were not distributed and kept as equity in order to avoid cash
outflow. Aside from these, the BRSA allowed the banks to distribute
dividends up to 10% of the net profit for the year of 2020.
