Bank Levy
a.k.a. Bank tax
A special tax charged on banks, often on the size of their balance sheets, to make them pay for the risk…
In plain English
A special tax charged on banks, often on the size of their balance sheets, to make them pay for the risk they pose.
A bank levy is a tax aimed specifically at banks, usually calculated on their liabilities rather than profits. Several countries introduced them after the 2008 crisis to recover some of the cost of rescues and to discourage risky borrowing.
New or higher bank levies can hit bank shares and, in smaller economies with big banking sectors, sometimes shift sentiment toward the currency.
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