Public Hearing on Bank Levy
Berlin, November 4, 2024 – The German Bundestag’s Finance Committee held a public hearing today to discuss the proposed banking levy. The levy, which is aimed at raising revenue to support the financial stability fund, has been met with mixed reactions from the banking industry.
In his opening remarks, Committee Chairman Frank Schäffler (SPD) stressed the importance of ensuring the stability of the financial system. “The banking levy is an essential element in achieving this goal,” he said.
However, representatives of the banking industry expressed concerns about the impact of the levy. Andreas Krautscheid, President of the Association of German Banks, warned that the levy could lead to reduced lending and higher costs for customers. “We believe that the banking levy is counterproductive and will ultimately harm the German economy,” he said.
Other speakers at the hearing included representatives from the Bundesbank, the German central bank, and the International Monetary Fund. The Bundesbank expressed support for the levy, arguing that it would help to reduce systemic risk in the financial system. The IMF, however, cautioned that the levy could have unintended consequences, such as reducing lending to small businesses.
The Finance Committee will now consider the testimony from the hearing before making a decision on whether to support the banking levy. The levy is expected to be voted on by the Bundestag in early 2025.
Background:
The banking levy was first proposed by the German government in 2023 as part of a broader package of financial stability measures. The levy would be imposed on all banks with assets exceeding €5 billion. The rate of the levy would be based on the bank’s risk profile.
The government has argued that the levy is necessary to ensure that banks contribute their fair share to the cost of financial stability. However, the banking industry has opposed the levy, arguing that it would harm the economy and reduce lending.
The public hearing on the banking levy is the latest in a series of consultations that the Finance Committee has held on the issue. The committee is expected to make a decision on whether to support the levy in early 2025.
Öffentliche Anhörung zu Bankenabgabe
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