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LONDON  - The Bank of England said on Wednesday the aim of its banking stress test this year is to check if lenders can continue helping the economy during the pandemic and allow the return to more normal levels of dividends for shareholders.

"The focus this year will be to inform judgements about the most appropriate ways in which the banking system can continue to support the economy through the ongoing stress," the BoE said in a statement.

"As noted in the December 2020 Financial Stability Report, the results of the 2021 test will also be used as an input into the Prudential Regulation Authority's transition back to its standard approach to capital-setting and shareholder distributions through 2021."