In a press release released on Monday, May 11, 2020, Bank Al-Maghrib announced the implementation of an exceptional measure to suspend the distribution of dividends by credit institutions.
Indeed, in the context of the pandemic Covid-19 crisis, credit institutions are called upon to strengthen their role in financing the economy.
To this end, Bank Al-Maghrib has already adopted a set of monetary and prudential policy measures aimed at facilitating access to bank credit for the benefit of both households and businesses.
For the same purpose, Bank Al-Maghrib believes that it is important that credit institutions keep sufficient capital to cope with the effects of the crisis and thus preserve their ability to provide financing in these exceptional circumstances.
Bank Al-Maghrib also called on credit institutions to suspend all dividend distribution for the 2019 financial year until further notice.
Bank Al-Maghrib will continue to monitor closely the implications of the health crisis for the national economy and the financial system and will take steps, if necessary, to address them.
Source: Bank Al-Maghrib, Press release, “Exceptional measure to suspend the distribution of dividends by credit institutions”, May 11, 2020: http://www.bkam.ma/Communiques/Communique/2020/Mesure-exceptionionnel -of-suspension-of-distribution-of-dividends-by-credit-establishments