BoE removes dividend restrictions on banks

Comes into immediate effect

The Bank of England (BoE) has ditched curbs set during the pandemic that restricted top banks from paying out dividends.

The decision follows a 16-month curb on dividend payouts. The BoE said that banks were now strong enough to support the economy throughout the rest of the pandemic and the interim results of the upcoming stress test showed the sector was "resilient". The Financial Policy Committee (FPC) said "extraordinary guardrails on shareholder distributions are no longer necessary". Light after the storm? Worst-case scenario offers bright outlook for post-pandemic UK dividends Elsewhere in the financial stability report, the BoE raised concerns about increased risk taking. The BoE highlight...