Britain, France and Germany have agreed to introduce a bank levy based on banks' balance sheets, they said in a joint statement released today.
'The governments of France, the UK and Germany propose to introduce bank levies based on banks' balance sheets,' they said, as Britain's finance minister announced a banking tax from next January.
The action is to that ensure banks 'make a fair and substantial contribution towards paying for any burdens associated with government interventions to repair the banking system or fund resolution in a financial crisis,' it added.
The statement noted that Germany announced a framework for a national bank levy at the end of March 'and will present draft legislation in the Cabinet in summer'. France will present the details of its bank tax in the coming budget, due later this year, it added.
'All three levies will aim to ensure that banks make a fair contribution to reflect the risks they pose to the financial system and wider economy, and to encourage banks to adjust their balance sheets to reduce this risk,' it said.
'The specific design of each may differ to reflect our different domestic circumstances and tax systems, but the level of the levy will take into consideration the need to ensure a level playing field,' it added.
The statement added that British, French and German leaders 'look forward to discussing these proposals further with international partners' at a Group of 20 summit in Canada next weekend.
