BB to relax cash dividend disbursement rules for banks

Bangladesh Bank has assured it will issue collaborative directives so that small investors get cash dividends from banks listed in the stock market in due time.

Previously, the central bank barred banks on disbursing cash dividends before September, however, the provision will now be waived for small investors.

The decision came after Bangladesh Securities and Exchange Commission (BSEC) chairman Shibli Rubayat Ul Islam met with Bangladesh Bank governor Fazle Kabir on Monday, said a press release.

On May 12, considering the economic situation in the country amid Covid-19 outbreak, the central bank issued a directive putting an embargo on banks for declaring dividends.

As per the directives, the proposed delay in dividend disbursement would keep the capital base stronger for the banks.

The BSEC and the central bank have also decided to work together to overcome the loan crisis during Covid-19 outbreak in the country. A focal point has already been recruited on both sides for conducting a view exchange meeting every month.

BSEC chairman said the commission is ready to help implement the prime-minister-declared stimulus package, if required.

As the BSEC chairman, this was the first meeting for Shibli Rubayat Ul Islam with the Bangladesh Bank, though both organisations have termed it as a courtesy meeting.  Various issues on the stock market, currency market, and mutual support between the two organisations were discussed in the meeting.