KNF loosens dividend restrictions for well-performing banks

The Polish Financial Supervision Authority (KNF) has allowed well-performing lenders to pay dividends worth up to 100 percent of profits, according to a statement issued on Tuesday. The maximum level of dividend will only be available to lenders that are not in restructuring programs. In the case of banks with significant non-financial sector deposit shares, up to 100-percent dividends will be allowed if the Core Tier-1 ratio is above 12 percent, the capital adequacy ratio (CAR) at above 15.5 percent and the assessment and good/satisfactory levels. In other banks, the CAR should be at 12.5-15.5 percent. For the dividends to be at up to 50 percent of profits, lenders need to have a Core Tier-1 ratio of above 9 percent and a CAR of more than 12.5 percent. Other banks should retain their profits without paying dividends, the KNF said.