Removal of reserve fund requirement in the policy document on Capital Funds for Islamic BanksRelease Date: 03 May 2017 Updated on: 04 May 2017
The Bank wishes to inform that effective 3 May 2017, Islamic banks are no longer required to maintain a reserve fund.
The Bank expects Islamic banks to exercise prudence before submitting an application to distribute the reserves as dividends. The Bank wishes to inform that in considering the dividend application, the Bank shall consider, among others, the Islamic bank’s ability to comply with the fully phased-in capital conservation buffer requirement and any other buffers that the Bank may specify.
Details can be found in the following documents:
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