Israeli banks may resume regular dividends in 2022, regulator says | Reuters
Israel's banking regulator said on Monday that Israeli banks could resume regular divided payouts starting in 2022, cancelling a temporary directive made at the outset of the COVID-19 pandemic while cautioning banks over market uncertainty caused by the virus.
"With the return to orderly economic activity, the need for providing easings to banking corporations in their banking activities declined," the Bank of Israel said. "Therefore, beginning from January 1, 2022, the temporary directive will expire."
Dividend payments and share buybacks were suspended in March 2020 to ensure banks had sufficient credit to lend to businesses during the COVID-19 pandemic. In return, banks received a 1% reduction in minimum capital ratios.
The Banking Supervision Department at the central bank said it was of the view that the return to orderly activity enables banking corporations to forecast capital needs and to distribute dividends.
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