BoE says it does not aim to set bank dividends under normal circumstances

LONDON, Jan 6 (Reuters) - Bank of England Governor Andrew
Bailey said on Wednesday that he wanted British banks to set
dividends freely, and that the BoE's decision last year to
temporarily bar dividend payments was an exceptional decision
due to COVID turmoil.

"It is not our intention as regulators to take over setting
dividends," Bailey told a British parliament committee.

"We did it ... in a very, very particular and special
circumstance," he added.

The BoE allowed British banks to resume paying dividends in
December as the financial stability impact of coronavirus had
become clearer.

(Reporting by Andy Bruce, writing by David Milliken, editing by
Huw Jones)