UPDATE 2-Bank of England says banks' dividend curb won't have long-term impact

  • 10/28/2020
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LONDON, Oct 28 (Reuters) - The Bank of England’s request in March for banks to restrain dividend payments will not change the amount of payouts over the longer term, its executive director for financial stability said on Wednesday. Investors in banks like HSBC were angered by the BoE’s request for banks to suspend dividends. But Alex Brazier said it stopped about 8 billion pounds ($10.4 billion) leaving the sector at a time when the economy was going into lockdown to fight the pandemic, leading to a 20 billion pound surge in provisioning for bad loans with analysts anticipating a similar amount still to come.

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