“Bank of England Will Fail To Pay Dividend To Treasury”
May 24, 2021
“The Bank of England will fail to pay a dividend to the Treasury this year for the first time in living memory after struggling to break even, posing a risk to its independence.
Minutes of the February meeting of the Court of Directors revealed that “the Treasury was not expecting to receive a dividend this year” after the Bank’s loss-absorbing capital fell below a minimum threshold.
Funding arrangements, agreed by the former governor Mark Carney, and rising project costs meant that the Bank “would be only just breaking even”. Andrew Bailey, 62, the current governor, is working on a new funding mechanism to rebuild the institution’s finances.
The 326-year-old Bank has made a profit every year since independence in 1997, and for as long as…
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