Coalition government launches consultation on Bank Levy
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Financial Secretary to the Treasury, Mark Hoban has today launched a consultation document on the bank levy.
The document sets out issues around technical aspects of the design and implementation of the bank levy.
This consultation exercise will help to ensure that the Levy is designed in a way that best meets its objectives, including ensuring the compliance costs faced by firms are minimised.
It is proposed that draft legislation will be published in the autumn to allow for further comments from stakeholders.
Final draft legislation for inclusion in the 2011 Finance Bill will be published towards the end of 2010, ahead of implementation of the Levy.
The structure of the Levy is intended to encourage the banks to move away from riskier funding models, reducing systemic risk. Once fully in place, the Levy is expected to generate around £2.5bn per annum. Copies of the consultation document and consultation stage impact assessment have been deposited in the Vote Office and the libraries of both Houses.
Hoban says:” Excessive risk taking in the banking sector was a significant contributory factor in the recent financial crisis. Alongside the wider financial regulatory reform aimed at increasing the resilience of the financial sector, the Levy is intended to ensure that the banking sector makes a fair contribution that reflects the risks it poses to the financial system and the wider economy, and to encourage banks to move away from riskier funding – problems with risky funding led to serious liquidity problems that played a key role in the financial crisis.
“The Chancellor of the Exchequer, George Osborne, announced the introduction of a Levy in the June Budget. It will apply to the balance sheets of UK banks and building societies, and to the UK operations of banks from abroad. At the same time, France and Germany also announced that they would introduce a Levy based on banks’ balance sheets.”
Readers' comments (1)
Joe is Leaving | 13 Jul 2010 2:28 pm
Wow, thats amazing!
Really I feel so emotional it tickles...
And where have we been in last several years? FSA?
Just another knee jerk reaction, all the boys see is the money coming in, I wonder where they're gonna splash it
- Let me guess a sink plunger?!
Why has it become a habbit to wait until disaster strikes that these clowns realised what a common man's common sense would have told them years ago.
All the mouth, no trousers.
Now lets do something really about this and get on our own feet.
its no longer a remedy to go back to basics, the moral compass here is too screwed up. what is needed is basics of common sense, which somewhat has evaporated under too many rules and regulations.
The tragedy is they dont work, here's why..
For those that dont understand and the crooks, the rules and laws do NOT EXIST - they're oblivious and dont care, partially you cant blame them as those who work to them are just so over stressed that at some point they go and break them too. Its a web of cross laws and rules that have lost parallels with the primary function of a service.
Its no wonder we brits have ever growing reputation of moaning, look at our lifestyle, it's bollacks
And what achievements have we made, £1,046Bn of debt - thats nearly £2,500 per person in britain including new borns
Nice!
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