Banks bow to stress and axe dividend funds

A man wearing protective face mask walks past the Bank of England in the City of LondonImage copyright Getty Images

Some of the UK’s greatest banks have agreed to scrap dividend funds and maintain on to the money, which can be wanted in the course of the coronavirus disaster.

The Bank of England welcomed the choice and inspired the banks to not pay bonuses to senior employees till the tip of the yr.

The banks, which embrace NatWest, Santander and Barclays, have been on account of pay out billions to shareholders.

But in latest days they’ve come beneath stress to carry onto the cash.

The deputy governor of the Bank of England, Sam Woods, wrote to some banking bosses asking them to droop dividend funds. He requested them to verify their choice by Tuesday night.

In a press release, the Prudential Regulation Authority, which is a part of the Bank of England, 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, alongside the extraordinary measures being taken by the authorities.”