On 8 June 2020, the Bank of England (BoE) and the PRA issued a short statement noting the recommendation made by the European Systemic Risk Board on the restriction of distributions during the COVID-19 pandemic. In the context of the UK’s withdrawal from the EU, this recommendation applies to UK authorities during the transition period.

The BoE and the PRA consider that that in light of their previous announcements including the letters from Sam Woods to UK deposit-takers on dividend payments, share buy-backs and cash bonuses there is no need to extend their guidance further at this time.