⁍ The Bank of England’s request in March for banks to restrain dividend payments will not change the amount of payouts over the longer term.
⁍ The BoE will now carefully consider banks’ distribution plans.
– The Bank of England has put the kibosh on some of Britain’s biggest banks’ dividend payments, but that won’t stop them from paying out billions more in the long run, a top official said on Wednesday. “This is a dividend delayed rather than a dividend destroyed forever,” Alex Brazier, the BoE’s executive director for financial stability, told an event, according to Reuters. “It does not change the amount of distributions banks will make over the long run.” In March, the BoE asked banks to limit the amount of money they pay out in dividend payments, saying it was necessary to prevent a repeat of the financial crisis. But some analysts have warned that the move could cause banks to stop paying out regular dividends altogether.
Source: https://www.reuters.com/article/boe-banks/bank-of-england-says-banks-dividend-curb-wont-have-long-term-impact-idUSL8N2HJ7LK