The employers of the AEB and CECA sector are supported in their position contrary to the new tax with the advice prepared by Frankfurt
The Spanish bank is supported in its position contrary to the tax that the government is processing in Congress to tax the “extraordinary” income of the entities following the advice prepared by the ECB. The employers of the financial sector have welcomed the position of the body chaired by Christine Lagarde on the harmful effects that the levy will have on banks.
The ECB has indicated that the tax may jeopardize the smooth transmission of monetary policy measures and that its amount may not be proportionate to the entities’ profitability; that there may be a lower volume of loans, as well as losses in the securities portfolio and an increase in provisions. In addition, he has warned that the bank will transfer the cost of the tax to the customer and that it is “legitimate” to do so.
Consulted CECA sources consider the ECB’s report “sound and strong”, in which the European regulator confirms the adverse effects the sector has shown since the announcement of the measure. The association has emphasized that the ECB has confirmed that the tax can create distortions of competition and affect the solvency of entities, their ability to provide credit and thus the economic growth of the country. “CECA is expected to take the ECB’s advice into account when processing the rule,” they noted.
For their part, AEB sources emphasized that the tax is “harmful to the economy and employment”, as it affects the ability to grant credit. “At this very difficult moment, we need a strong banking sector to support families and businesses like at the worst moments of the pandemic,” they emphasized.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
