Financing financial crisis in banking sector
Financing financial crisis in banking sector

Summary/Abstract: One way of financing the costs of financial crises is to introduce a special tax just for the financial sector. There are discussions in the European Union on the possible introduction of a uniform tax on financial transactions that have ensured stability of the financial sector since 2011. Most Member States are inclined to the proposal but some states strongly reject the financial transactions tax in Europe and also at the global level. Some countries have introduced separate special levies or taxes imposed by the banks only to the banking sector. In 2012, The Slovak Republic introduced a special levy of selected financial institutions which apply to banks and branches of foreign banks. Selected contributions will lead to separate extra-budgetary account and are intended to cover costs associated with potential future financial crises.

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