BoE reauthorises bank dividend payments
The Bank of England (BoE) has once again authorised banks to pay out bonuses and dividends. It believes that, in spite of the pandemic, banks are sufficiently well capitalised to lift the ban. The European Central Bank is also expected to rule soon on a possible resumption in dividend payments by euro zone banks. Over the past few weeks, proponents of a return to normal on dividends in the euro zone believe that an extension in the ban would place the ECB in an awkward position with the law, as the institution’s mandate does not allow it to make such decisions for European banks.