Banking
Israeli bank regulator extends dividends payment policy to year-end
Published by maria gbaf
Posted on September 20, 2021
1 min readLast updated: February 5, 2026
Global Banking & Finance Review®
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Published by maria gbaf
Posted on September 20, 2021
1 min readLast updated: February 5, 2026
Israel's bank regulator extends dividend policy to year-end, capping at 30% of profits, reflecting recovery from COVID-19.
JERUSALEM (Reuters) – Israel’s banking regulator on Sunday extended until the end of the year a temporary provision allowing banks to resume paying dividends as the country recovers from the COVID-19 crisis.
In a statement, the Bank of Israel maintained its advisory to cap dividends at 30% of 2020 and 2021 profits, saying a higher figure at this time would “not be considered prudent and conservative capital setting”.
At the start of the global pandemic last year, the central bank instructed lenders to suspend dividend distribution and share buy-backs. It gave the go-ahead two months ago for limited dividend payments to resume.
Announcing a three-month extension of the dividends policy through Dec. 31, the bank noted “the increasing trend of recovery from the COVID-19 crisis” and the “soundness” of Israel’s banking system.
But it said discussions on dividend distributions should still take into account “the level of uncertainty regarding the continuation of the COVID-19 crisis and its future economic implications”.
(Reporting by Jeffrey Heller; Editing by Alexander Smith)
The article discusses the extension of Israel's bank dividend policy to the end of the year amid COVID-19 recovery.
The cap is to ensure prudent and conservative capital setting during ongoing economic uncertainties.
Initially, banks were instructed to suspend dividends and share buy-backs due to the pandemic.
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