Bank of England Contemplating Extending Payouts Suspension

The Central Bank of Britain also known as Bank of England announced that it’s considering extending a suspension of payouts by banks. The bank said it’s assessing whether to prolong the suspension of payouts including share buybacks and dividends by banks which is due end of year.

The assessment will be based on the current and projected capital positions of the banks and will take into account the level of uncertainty about the future path of the economy, market conditions and capital trajectories prevailing at that time,” said the Central Bank.

The bank attributes the deep biting pandemic as the main reason to why it’s contemplating extending the suspension period.

The Central Bank decided to suspend the payments for this year back in March in efforts to hold more capital which can be used to help households and companies greatly affected by the pandemic to bounce back.

The bank also scrapped away bonuses packages to senior staff members.

The bank is expected to make public its results for the second quarter of the year anytime. Analysts are looking forward to results containing heavy provisions of loans due to the pandemic which crippled many sectors of the economy resulting to immense borrowing to remain afloat.

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