Bank of England says bank buffer may need reworking to handle crises

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Even though regulators have given banks the green light to dip into buffers to help businesses survive the COVID-19 hit to the economy, there was a “first mover disadvantage” to doing so as it could limit dividends and other payouts, Cunliffe said.

“We will need to think through this question more as the recovery – albeit a bumpy one – gathers pace, as impairments mount and it becomes clearer how permanent the damage will be,” Cunliffe told an online event hosted by the Washington-based Peterson Institute for International Economics.