GR-3.1.3
For the purpose of Paragraph GR-3.1.1,
(a) Submit the following:
(i) The intended percentage and amount of proposed dividends;
(ii) The impact of proposed dividends on:
(a) Capital Adequacy Ratio (CAR), Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and Leverage Ratio (LR) showing the ratios before and after the proposed dividends;
(b) The cash flow position and shareholders’ equity level before and after the proposed dividends;
(iii) Stress testing results evidencing that the proposed dividends would not lead to any breach of the regulatory requirements (CAR, LCR, NSFR and LR) in the last financial year and the next two years under normal and stressed scenarios.
(b) Satisfy the CBB of the adequacy of impairment provisions during the review of the annual/interim financial statements;
(c) Ensure that any unrealized gains arising from assets or liabilities fair value assessment are excluded from net income in the determination of the proposed dividends, given that CBB does not permit distribution of unrealised profit;
(d) Ensure that the amount of realised profits included in the retained earnings as at the year-end is sufficient to cover the proposed dividend amount; and
(e) Ensure that any negative fair value on assets held at amortised cost do not have any material adverse impact on the capital and liquidity positions where such assets may need to be liquidated before maturity to satisfy any financial obligations, including deposit withdrawals.
Amended: January 2024
Amended: July 2023
Amended: October 2017
Amended: October 2011
October 07
Amended: July 2023
Amended: October 2017
Amended: October 2011
October 07