So we have a new bank levy – to be charged on bank assets.
Plans for a global bank levy took a major step forward on Tuesday as the UK announced it would raise £2.5bn with a tax on bank balance sheets and the leaders of France and Germany called for the Group of 20 to reach international agreement on a similar tax……..The levy will have the secondary effect of encouraging banks to cut their reliance on short term funding – a major goal of global banking regulators – because wholesale funding of more than a year’s duration will be subject to a reduced rate of 0.02 percent, rising to 0.035 per cent, and tier 1 capital and retail deposits would be exempt.
We have a new bank levy – to be charged on bank liabilities.
Good grief, the man\’s an accountant and cannot even get which side of the balance sheet is which right.
You’re surprised?
Not that it really matters .When banks create a new sum of money they cover themselves by creating two accounts (one asset/one liability) to make it appear there is a balance.