10th Oct 2014 05:52
LONDON (Alliance News) - The UK government is unlikely to sell any more of its 25% stake in Lloyds Banking Group PLC until the lender is given regulatory approval by the Prudential Regulation Authority to start paying dividends again, Reuters reported on Thursday, citing banking and political sources.
According to the report, approval for the FTSE 100 bank to recommence dividend payments is thought to be key to pushing the shares up to a level that would enable UK Financial Investments, which manages the government's stakes in bailed-out banks, to convince Britain's finance ministry that a sale would be in taxpayers' best interests.
In order to be allowed to recommence dividend payments, Lloyds must convince the PRA of the strength of its capital position.
http://uk.reuters.com/article/2014/10/09/uk-britain-banks-sale-idUKKCN0HY1GP20141009
By Samuel Agini; [email protected]; @samuelagini
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