BoE permits UK banks to resume dividends, subject to caps

Bank of England BoE adobe stock 230x150
By Frank Jackman
11 Dec 2020

The Prudential Regulation Authority has told UK banks that they are free to resume dividend and bonus payments from next year, though pay-outs will be subject to caps based on profits and risk-weighted assets.

The Old Lady initially told firms in late March that they should suspend dividend payments, share buybacks, and senior staff cash bonuses in 2020 because of the impact of the coronavirus pandemic.

The easing of this ban comes after the supervisory body put banks through two stress ...

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