BoG to banks: Seek written approval before paying dividends to shareholders

The Bank of Ghana (BoG) says the move is due to the uncertainties surrounding the pandemic and its potential impact on the banking sector

Joseph Appiah-Dolphyne April 13, 2021

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The Bank of Ghana (BoG) has once again directed banks and specialised deposit-taking institutions (SDIs) to desist from declaring, paying dividends or distributing reserves to shareholders for the 2020 and 2021 financial years.

The BoG has also directed the banks and SDIs from making any irrevocable commitments regarding the declaration or payment of dividends to shareholders for 2020 and 2021 financial years.

In a statement on Monday (12 April 2021), the BoG said, “Banks and SDIs shall seek prior written approval from the Bank of Ghana before declaring or paying dividends or distributing reserves to shareholders, and making any irrevocable commitments regarding the declaration or payment of dividends to shareholders.”