Germany s cabinet on August 25 adopted a motion on bank restructuring, including the bank tax collection plan. Bank tax plans to begin implementation in January 2011, each bank does not exceed the total annual tax of 15 of its annual profit.
Bank tax is expected to bring an annual 1.2 billion euros, the German government s tax revenues, these gains will be included in the German bank restructuring fund. Analysts pointed out that the introduction of bank profits tax will be a great impact on the German banking sector. Widely expected in 2010 pre tax profit of the banking sector may therefore fell 3 to 7 .
Bank tax charged annually
German cabinet passed bank restructuring 25 motion to be struggling to provide a range of tools for banks, allowing banks to have a systemic risk assets transferred to third parties or transitional public private sector bank, instead of relying on government assistance to complete the restructuring .
The bill is the brink of bankruptcy bank consolidation in Germany as part of a package of measures, now pending approval of the German House of Commons and the House of Lords is expected to take effect before the end of 2010.
German Finance Minister Schäuble said: fill the financial crisis has exposed gaps in financial regulation and efforts to avoid a recession just as important. But he said the world s major economies is unlikely in the near term imposed on global financial transactions tax agreement.
Motion according to bank restructuring, bank tax is expected to begin from January 2011 levy applies to all based in Germany and to achieve annual net profit of the bank, including savings banks and cooperative banks. The bill provides that the bank tax levied each year a total of not more than 15 of Bank s annual profit; If the bank then failed to achieve profitability, the profitability of the new levy will pay the amount of under 5 .
To enable banks in the future possible crises in advance of payment of a fee, to reduce the burden on taxpayers, the bill provides that engaging in risky business for more banks to pay the higher of the Yinxing tax. Bank tax liabilities, the bank also increased the total increase. The bill provides for the liability balance of up to 10 billion euros of bank debt balance of its bank tax to 2 basis points; for debts of up to 100 billion euros of bank debt balance of its bank tax will be 3 basis points; for liabilities of the balance of over 100 billion euros of bank debt balance of its bank tax to 4 basis points.
Affect bank profits
German bankers say the banks huge amounts of tax and will impact on profitability, particularly for only a small amount of customer deposits and wholesale banking. According to estimates, by 2011, Deutsche Bank will pay up to 450 million euros of the bank tax, the German commercial bank to pay 220 million euros of tax, the largest number of German customers of retail banks Deutsche Postbank around to pay 27 million euros, the German transport bank Bank of Credit and tax may be paid 480 million euros.
PricewaterhouseCoopers said in a report published this week in 2009, the European banking sector bad debt has expanded rapidly and the scale of bad debt banking in Germany ranks first in Europe. Data showed that as at the end of 2009, the German banking sector balance sheet book value of bad debts rose 50 to 213 billion euros.
Deutsche Bank s global analyst Gordon, said: Deutsche Bank bad debts are almost identical reason for the increase, mainly due to the long over concentrated in the U.S. real estate. These bank loans, 80 to 90 of commercial or housing related loans Among them, 30 to 40 may be bad.
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