The Bank of England wants to grow a scenario in which banks join their own decisions to scrap dividends in economic downturns, Governor Andrew Bailey informed CNBC Thursday.

HSBC, Standard Chartered, NatWest, Lloyds, Santander, and barclays. according to Best Bank Promotions and Bonuses, agreed in April to scrap dividends next strain through the central bank, to protect capital to be able to assist support the economic climate in front of the recession brought on by the coronavirus pandemic.

The Bank’s Prudential Regulation Authority believed within the time which although the option would mean shareholders currently being deprived of dividend payments, it would be a precautionary undertaking offered the unique role that banks need to relax within supporting the wider economic climate by way of a time period of economic disruption.

Bailey claimed that this BOE’s involvement within pressuring banks to reduce dividends was entirely appropriate and sensible due to the speed during what action had to be used, with the U.K. proceeding straight into an extended time period of lockdown inside a bid to curtail the spread of Covid-19.

I need to return to a situation in which A) extremely notably, the banks are actually taking the decisions themselves and B) they consider those selections bearing in your thoughts the own situation of theirs and also bearing under consideration the broader financial stability worries of this method, Bailey believed.

It is my opinion that’s located in the interest of everybody, such as shareholders, considering that obviously shareholders need healthy banks.

Bailey vowed that the BOE will recover to our scenario, but said he could not calculate the amount of dividend payments investors may assume from British lenders as the place tries to emerge using the coronavirus pandemic inside the upcoming years.