LONDON: Some banks are urging the government to lift a ban on dividend payments imposed as part of its 37 billion pound bail-out of the crisis-hit sector, The Financial Times reported on Wednesday.
The FT gave no source for its information.
Royal Bank of Scotland, HBOS and Lloyds TSB -- the three lenders participating in the state rescue -- have all seen their share prices drop as a result of the dividend condition, the newspaper said.
All three banks are currently trading below the price at which the government has offered to buy the shares, meaning private investors are unlikely to take up the stock.
That would leave the government with the highest possible stake in each bank -- maximising the risk to taxpayers. A reinstatement of dividends could make the shares more appealing to non-government buyers.
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