Published On: Tue, Jul 13th, 2021
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Bank of England Ditches Dividend Limits on UK Bankson July 13, 2021 at 4:56 pm Save 10% on Citrus trees with code CITRUS
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LONDON—The Bank of England on Tuesday ditched limits on dividends banks pay out to their shareholders that were first introduced at the outset of the coronavirus pandemic as part of a package of measures to shore up the British economy. The bank’s Financial Policy Committee, which monitors risks to financial stability, said the limits were “no longer necessary.” But it stressed that lenders will need to provide ongoing support to the economy, not least because the government is ending its salary support scheme in September and emergency business loans start having to be paid back. The bank halted dividends in the sector in March last year when the pandemic struck, but said in December that banks could pay limited dividends. Though the committee said in its quarterly Financial Stability Report that the economic outlook has improved as a result of the rapid rollout of vaccines in the UK, it warned …

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