IMF moots plans to tax banks for future bailouts

The International Monetary Fund has proposed to levy two new taxes on banks and other financial institutions in order to pay for any future bank bailouts.

The BBC has reported that under the plans banks would pay one tax at a set rate and a further tax on profits and pay.

A statement from the British Bankers’ Association says that banks are already required to hold more cash and capital to limit future risk.

The BBA statement says: “All taxes have an impact and more tax has more impact.

“The recommendations need to be carefully examined but we remain concerned about moves which would place the UK industry at a competitive disadvantage internationally.

“We also need to see all the detail of what is proposed – and how any new levy and tax would apply – to determine the effect it would have.”