BoE gives UK banks no choice but to suspend dividends, bonuses

By Tyler Davies
01 Apr 2020

The Bank of England threatened to use its ‘supervisory powers’ on UK banks if they did not agree to suspend dividend distributions this year and stop paying cash bonuses to staff. The instructions do not apply to the equity-like CCDS instruments issued by building societies.

Sam Woods, CEO of the Prudential Regulation Authority (PRA), sent strongly worded letters to the seven largest deposit-taking financial institutions in the UK on Tuesday.

He told the firms that they should suspend dividends and buy-backs on ordinary shares until the end of 2020, as a result ...

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