Austria: Dispute about Bank Tax Culminates

People ♦ Published: April 3, 2014; 12:15 ♦ (Vindobona)

The establishing of a new fund for the banking union will become a financial burden for banking institutes.

Chancellor Faymann wants to use the bank levy for the downsizing of problem bank Hypo Group Alpe Adria. / Picture: ©

The debate about the financing of the banking union has begun. Depending on estimates, banks are facing additional annual burdens from € 250m to € 350m for the establishing of the Single Resultion Fund (SRF) and the standardized Deposit Guarantee Scheme (DGS). Since the additional banky levy in the amount between € 625m to € 640m annually would probably be a too heavy weight to…