‘Big Profits’ Justify New Bank Measures, Swedish Government Says

bloomberg

Sweden’s government is putting forward a new proposal for a financial industry tax and will require banks to contribute more to a crisis fund as the administration argues lenders are making more than enough money to absorb the extra cost.

“Now that times are good and the banks are making big profits, we also have an opportunity to build defenses for the future and potentially worse times, and strengthen the financial system,” Financial Markets Minister Per Bolund said at a press conference in Stockholm on Saturday.

The government plans to unveil a new bank tax proposal before elections in September next year, marking its latest attempt to impose a levy that doesn’t collide with European Union rules. The Social Democrat-led coalition’s previous efforts, which also targeted life insurers, met broad and vocal opposition, including from Sweden’s competition authority and the tax agency that would have enforced the rule, sending the administration back to the drawing board.

“We will go forward with a tax that focuses more on the banks and will start working on that at the finance ministry now, but we’re also increasing the fee for the resolution fee,” Finance Minister Magdalena Andersson said during the same press conference…

Read more : Bloomberg, 25.02.2017