BoE’s Prudential Regulation Authority (PRA) said it will asset whether to extend the suspension on bank payouts like dividends and share buyback beyond the end of the year. The statement came after ECB’s decision.
PRA reiterated the decision to suspend dividends, share buybacks and cash bonuses back in March was “a sensible precautionary step given the unique role of banks in supporting the wider economy through the period of economic disruption.” PRA will “undertake its assessment of firms’ distribution plans beyond the end of 2020 in Quarter 4 2020.” ”
The assessment will be based on the current and projected capital positions of the banks and will take into account the level of uncertainty on the future path of the economy, market conditions, and capital trajectories prevailing at that time.”
