British banks scrap dividends and bonuses

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Britain’s biggest banks have agreed to scrap payouts to shareholders and are expected not to pay out any bonuses to senior staff, after a request from the Bank of England.

The Prudential Regulation Authority, which is part of the Bank, said Standard Chartered, NatWest, Santander, the Royal Bank of Scotland, Nationwide, Lloyds, HSBC and Barclays have all agreed to drop their dividends and share buybacks until the end of the year, and cancel outstanding dividends from 2019.

It comes as the UK prepares for a potential recession. The PRA said that the decision is a “sensible precautionary step given the unique role that banks need to play in supporting the wider economy through a period of economic disruption”.