UK Prudential Regulation Authority Announcement on Bank Dividend Payments and Share Buybacks Beyond 2020

The U.K. Prudential Regulation Authority has published an announcement on its approach to dividend payments and share buybacks by large U.K. banks subject to its prudential supervision, in light of COVID-19. The PRA states that it intends to assess firms' plans for distributions beyond 2020 in Q4 2020, taking into account banks' current and projected capital positions and the level of uncertainty around the economy, market conditions and capital trajectories at that time.

The PRA's announcement follows the European Central Bank's recommendation, published on July 27, 2020, that Eurozone banks should not pay dividends until January 2021. In March 2020, the PRA published an announcement supporting the decisions of the U.K.'s largest banks to suspend dividends and buybacks until the end of 2020 and to cancel outstanding 2019 dividends.

View the PRA's announcement on bank dividend payments and share buybacks beyond 2020.

View details of the ECB's Recommendation on bank dividends.

View details of the PRA's March 2020 announcement.

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