Bankinter assures it will do this “the day after it pays for it”, while Sabadell criticizes that “it was done very badly”, so the cost will ultimately be paid by the customer
The relationship between the government and the bank is tense again. A few days after approval in the Congress of Deputies, the sector settles the banking tax with which the Executive wants to raise 3,000 million euros in two years. And several of the country’s major entities have already assured that they plan to appeal the tax once it kicks in.
“We have no choice but to abide by it and we will, but are we going to appeal? The day after payment, no doubt,” confirms María Dolores Dancausa, CEO of Bankinter. Speaking at the XIII Financial Meeting organized by KPMG and ‘Expansión’, the board stressed that “we are going to do it because it seems to us an unfair, discriminatory and confiscating tax that does not respond to any technical justification”.
In the same sentence, albeit with a somewhat more moderate tone, they are pronounced from Ibercaja Banco, where they consider the appeal to the courts “probable”, unless the text that has received Congressional approval changes substantially in its I pass through the Senate. From the entity, they indicate that “reason assists us” at a time of uncertainty when, in their view, the tax limits banks’ ability to generate capital.
Others, such as CaixaBank, have also hardened their discourse against the industry’s 4.8% tax on fees and interest. While the entity has not yet decided whether to appeal to the courts, it is now ensuring that it will make its decision in accordance with its obligations as directors. “If the final text contains elements that, from our point of view, are not in accordance with the law, it is our duty to appeal,” said Gonzalo Gortázar, CEO of the bank, while participating in the meeting.
And the same position is taken by the directors of BBVA. The CEO, Onur Genç, has also opposed it, as the tax will hurt Spain’s economic recovery. While they will have to analyze the final text before deciding whether to appeal or not, they argue that there are many academic studies that indicate that these types of taxes limit the sector’s borrowing capacity and therefore the real economy. “This is not the right time,” he insisted.
And it is that the idea is converging in the industry that ultimately the tax will not only harm customers and shareholders. Legal certainty is also at stake, according to various financial entities. In Bankinter they believe that the Spanish tax system should be “solid and sustainable” and should not respond to “emotional criteria or simple whims”.
In turn, Banco Sabadell’s CEO, César González-Bueno, agreed that the banks should somehow pass on the temporary tax to the industry, as set out in the guidelines of the European Banking Authority (EBA) and the European Central Bank. Bank (ECB), and has warned that customers will “pay for it here instead of there”.
For the administrator, the load has been increased “very, very badly and very quickly”. And don’t forget that the EBA guidelines specify that financial institutions must reflect all relevant costs, including taxes, in the price of their loans, while the ECB expects institutions to reflect all relevant costs, including taxes, in the price of their loans . “So what do we do now? Who do we meet? This is the problem of quickly legislating and skipping procedures and that is not advisable at all, which is why the tax seems wrong to us, “Considered González-Bueno.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
