The Bank of England intends to block the increase in dividends to bank shareholders in case they miss the capital requirement to boost lending in the post-Brexit era.
The Committee of the Bank of England has in fact agreed to a further easing of the requirements of the Countercyclical capital buffer until June 2017, to allow for more loans to households and businesses. However, it expects "banks not to increase dividends or other forms of distribution after this decision."
The announcement had an immediate effect on bank stocks which plummeted. Even before Brexit, Barclays and the Royal Bank of Scotland rejected the idea of paying dividends to short-term shareholders.
Cutting the countercyclical buffer means that 3/4 of banks, which account for 90% of loans, can pump credit into the economy.