UPDATE 1-RBS chairman calls on BoE to lift dividend curbs by autumn

(Adds additional comments)

By Iain Withers

LONDON, July 3 (Reuters) - The chairman of majority
state-backed lender Royal Bank of Scotland has called on
the Bank of England to lift curbs on dividends by the autumn to
make lenders attractive to investors again.

Howard Davies said banks - which were forced in March to
ditch dividends and buybacks until the end of 2020 to bolster
their finances against an expected steep economic downturn -
could not suspend payouts indefinitely.

"It's probably fair to say the banking sector is not
investible because when people try to do the models about what
banks are worth they can't plug in any numbers for cash out,"
Davies told a City & Financial webinar on Friday.

The Bank of England was not immediately available for
comment.

British lenders have lent more than 40 billion pounds ($50
billion) of state-backed funds to struggling businesses during
the crisis, but are bracing for an expected wave of defaults in
the coming months.

"We can see clouds gathering on the horizon, but it hasn't
yet started to pour down with rain, but I think we know that
it's going to, and that's going to be a very difficult period
for us," Davies said.

Anne Boden, CEO of digital bank Starling, meanwhile, said
banks would need government support in handling unpaid
state-backed business loans in the coming months.

RBS's stock has fallen by around half this year, wiping 15
billion pounds from its market value, while rival Lloyds
shares are also down around 50%. The FTSE 100 as a
whole is down 18% in the year to date.

RBS was rescued by the British government in 2008 and,
despite plans to sell off the stake, it still owns 62% of the
bank.

($1 = 0.8033 pounds)
(Reporting by Iain Withers and additional reporting by Huw
Jones; editing by Simon Jessop and Mark Potter)