The Board of the BCRA has established that financial institutions will be allowed to distribute up to 20% of their retained earnings as of December 31, 2021, in twelve consecutive monthly installments, in accordance with the rules on distribution of earnings.
The BCRA’s prudential regulation seeks to ensure the soundness of the financial system in a context of increased lending, accompanying the expansion of economic activity after recovering from the consequences of the COVID-19 pandemic.
Financial institutions will have to meet capital compliance requirements set by the Basel Committee and request authorization from the BCRA prior to the distribution of earnings.
