Duvar English

Turkey’s banking regulator has advised banks to not distribute profits that they obtained in 2019, citing the continuing balancing process and the strong resource needs.

The advisory document sent by Banking Regulation and Supervision Agency (BDDK) to the banks said that it’s necessary to maintain a cautious policy aimed at keeping banks’ resource structures and hence, the profits obtained in 2019 should not be distributed to shareholders and executives.

“The profits and reserves kept under resources shouldn’t be distributed in a way that would cause cash outflows,” the BDDK said.

Last year, the regulator advised banks with core capital adequacy ratio lower than 12 percent to not pay dividends.