Turkey watchdog urges banks to withhold dividends – report

Turkey’s banking watchdog urged the country’s banks to withhold dividends from 2019 profits to help government efforts to rebalance the economy, Dünya newspaper reported.

Retaining the profits in balance sheets would also help banks bolster their capital, which needs to remain strong, Dünya said citing a statement by the Banking Regulation and Supervision Agency (BDDK).

Last year, the BDDK ordered banks with a capital adequacy ratio of less than 12 percent to refrain from paying out dividends to shareholders. It made the demand after a currency crisis that ripped through financial markets in August 2018 tipped the country into recession and led to a surge in non-performing loans.