UPDATE 1-Bank of England asks banks to estimate pandemic loan losses

(Adds more detail)

LONDON, June 4 (Reuters) - The Bank of England will gather
more information from banks on their likely losses on loans due
to the pandemic, its deputy governor Sam Woods said on Thursday.

The BoE's Prudential Regulation Authority will gather the
data ahead of banks' second quarter earnings to compare the
timing and amount of losses with those it modelled last month.

"This information will enable us to identify any significant
outliers and to further refine our estimates for future capital
exercises," Woods said in a letter to banks.

Britain is facing its worst recession in 300 years due to a
national lockdown that has shuttered businesses and furloughed
millions of employees, with losses on loans to companies set to
rocket.

The Bank estimated last month that loan losses at banks
could reach 80 billion pounds by the end of 2021, but that
lenders are robust enough to maintain the flow of credit to
companies and households.

The BoE has already issued guidance on how banks can take
into account government relief measures such as loans and
repayment holidays on mortgages when calculating expected losses
and how much capital should be set aside to cover them.

On Thursday, Woods set out further guidance on how banks
should assess the capital and accounting treatment for the
three-month holiday on mortagage payments that end this month in
some cases ahead of second quarter earnings statements.
(Reporting by Huw Jones; Editing by Andrew Heavens)