ECB criticises Italy’s windfall tax on banks

Central bank warns measure could hamper monetary transmission and weaken lenders

The European Central Bank, Frankfurt
Annabel Jeffery

The European Central Bank (ECB) has criticised Italy’s proposal of a tax on banks’ windfall profits, which the government first presented in August.

In a non-binding legal opinion, published today (September 13), the central bank warns the measure could weaken lenders, making it more difficult for them to build capital buffers and supply credit to the economy.

On August 7, the Italian government announced a 40% levy on banks’ interest margins, without any previous consultation with the banking

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