The Bank of England hopes to establish a situation where banks sign up for their own decisions to scrap dividends in economic downturns, Governor Andrew Bailey informed CNBC Thursday.

Barclays, Santander, Lloyds, NatWest, Standard Chartered and HSBC. according to Best Bank Promotions and Bonuses, agreed on April to scrap dividends following stress with the key bank, to conserve capital to be able to assist support the economy in advance of the recession caused by the coronavirus pandemic.

The Bank’s Prudential Regulation Authority believed during time that although the determination will signify shareholders getting deprived of dividend payments, it would be a precautionary move provided the special function which banks have to have fun within supporting the broader economy through a time period of economic interruption.

Bailey believed that this BOE’s mediation inside pressuring banks to reduce dividends was completely appropriate and sensible due to the speed at which action had to be used, using the U.K. proceeding right into an extended time of lockdown inside a bid to curtail the spread of Covid-19.

I would like to return to a scenario wherein A) really notably, the banks are actually having the choices themselves and also B) they take the choices bearing in your thoughts the own situation of theirs and also bearing under consideration the broader economic balance fears of the system, Bailey said.

I think that is using the fascination of everyone, such as shareholders, considering that obviously shareholders want sound banks.

Bailey vowed that a BOE would get back to our scenario, but stated he could not estimate the amount of dividend payments investors could assume from British lenders as the place attempts to present themselves using the coronavirus pandemic inside the approaching years.