Taxing banks: An evaluation of the German bank levy

Claudia Buch, Björn Hilberg and Lena Tonzer

Journal of Banking & Finance, 2016, vol. 72, issue C, 52-66

Abstract: Bank distress can have severe negative consequences for the stability of the financial system. Regimes for the restructuring and resolution of banks, financed by bank levies, aim at reducing these costs. This paper evaluates the German bank levy, which has been implemented since 2011. Our analysis offers three main insights. First, revenues raised through the levy were lower than expected. Second, the bulk of the payments were contributed by large commercial banks and by the central institutions of savings banks and credit unions. Third, for those banks, which were affected by the levy, we find evidence for a reduction in lending and higher deposit rates.

Keywords: Bank levy; Bank lending; Interest rates; German banks (search for similar items in EconPapers)
JEL-codes: C21 G21 G28 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

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Related works:
Working Paper: Taxing Banks: An Evaluation of the German Bank Levy (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:72:y:2016:i:c:p:52-66

DOI: 10.1016/j.jbankfin.2016.07.010

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