Coronavirus: UK banks scrap shareholder payments – The National

Coronavirus: UK banks scrap shareholder payments – The National

The Bank of England called on lenders to hold on to cash during the pandemic. Some of the biggest banks in the UK have scrapped billions of pounds in shareholder dividends and share buy-backs after the Bank of England said holding on to cash would help lessen the financial fallout from the coronavirus pandemic.. The lenders had been due to pay out over £8 billion (Dh36.34bn) between them in 2019 dividends.. "The PRA welcomes the decisions by the boards of the large UK banks to suspend dividends and buy-backs on ordinary shares until the end of 2020, and to cancel payments of any outstanding 2019 dividends in response to a request from us," the regulator said.. The lenders have to announce changes to their executive pay policies.. The regulator said that the banks had enough money in reserve to cope with a global recession and a shock in financial markets.. "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," it said.. HSBC