Prudential Regulation Authority, part of BoE, stated:
Although the decisions taken today will result in shareholders not receiving dividends, they are a sensible precautionary step given the unique role that banks need to play in supporting the wider economy through a period of economic disruption.
Lloyds, Royal Bank of Scotland, Barclays, HSBC and Standard Chartered were expected to pay around £15.6 which will not be retained until the end of the year which according to the BoE, “should help the banks support the economy through 2020”.
Chief executive for UK finance, Stephen Jones, said that banks were considering these actions even before it was suggested by the BoE.
Stephen Jones stated:
It’s very prudent for banks to be retaining capital rather than distributing it in the current environment.
It’s important that the banks are given as much firepower as they can to support the economy.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.