LONDON—The Bank of England on Tuesday ditched limits on dividends banks pay out to their shareholders that were first introduced at the outset of the coronavirus pandemic as part of a package of measures to shore up the British economy.
The bank’s Financial Policy Committee, which monitors risks to financial stability, said the limits were “no longer necessary.” But it stressed that lenders will need to provide ongoing support to the economy, not least because the government is ending its salary support scheme in September and emergency business loans start having to be paid back.
