Bank of England tweaks stress test of banks in light of COVID-19

LONDON, Jan 20 (Reuters) - The Bank of England said on
Wednesday the aim of its banking stress test this year is to
check if lenders can continue helping the economy during the
pandemic and allow the return to more normal levels of dividends
for shareholders.

"The focus this year will be to inform judgements about the
most appropriate ways in which the banking system can continue
to support the economy through the ongoing stress," the BoE said
in a statement.

"As noted in the December 2020 Financial Stability Report,
the results of the 2021 test will also be used as an input into
the Prudential Regulation Authority's transition back to its
standard approach to capital-setting and shareholder
distributions through 2021."

(Reporting by Huw Jones, editing by Louise Heavens)