DHAKA, May 23, 2026 (BSS)– Bangladesh Bank (BB) has set a minimum paid-up capital requirement of Taka 2,000 crore for scheduled banks to become eligible for declaring cash dividends, in a major regulatory move aimed at strengthening the capital base of the country’s banking sector amid growing economic and financial risks.

Under the new directive, banks with paid-up capital below Taka 2,000 crore will not be allowed to declare any cash dividend to shareholders, said a BB circular issued today. 

Even banks that meet the eligibility threshold will be permitted to distribute a maximum of 50 percent of their total declared dividend in cash, while the remaining portion must be issued as stock dividends or bonus shares.

According to the circular, the measures are intended to preserve capital within the banking system, improve resilience against potential shocks and protect depositors’ interests in an increasingly uncertain global and domestic economic environment.

The new conditions will come into effect for dividend declarations relating to the financial year ending December 31, 2026, and will continue for subsequent years.

The directive supplements earlier regulatory frameworks concerning the Capital Conservation Buffer (CCB) and Minimum Capital Requirement (MCR).

Bangladesh Bank said all other provisions contained in DOS Circular No. 01 dated March 13, 2025, and SPCD Circular No. 02 dated March 15, 2026, will remain effective.