Response to potential profit sharing requests from BRSA banks

The Banking Regulation and Supervision Agency (BRSA) stated that potential profit sharing demands from banks can be assessed taking into account the prudential principle and special circumstances, especially the capital adequacy ratio.

BRSA sent a letter to the associations of institutions about the distribution of banks’ profits last year and the profits and reserves that were not distributed before 2022.

Emphasis on ‘prudential policy’

In the article it was indicated that an evaluation was made on the profit distribution requirements of the banks, and the following was indicated:

“As a result of the evaluations, it was concluded that the prudent policy must continue to maintain solid banks’ capital structures, given the current economic instability and expectations of stagnation around the world.

In this framework, it would be beneficial for the shareholders not to distribute the profits obtained in 2022 and the profits and reserves that were obtained before 2022, but kept in the shareholders’ equity, so that there is a cash outflow; However, it has been concluded that the possible demands for distribution of profits can be evaluated taking into account the principle of prudence and the special circumstances of the banks, especially the capital adequacy index.” (AA)