November 21, 2024 16:31 GMT
SPAIN: Extension to Spain's Bank Windfall Tax
SPAIN
More detail on the extension of the Bank Windfall Tax here:
- "*SPAIN APPROVES NEW MAXIMUM RATE OF 7% FOR BANK TAX: VANGUARDIA"
*SPAIN'S NEW RATE AFFECTS CAIXABANK, SANTANDER, BBVA: VANGUARDIA" - bbg
Morningstar commented on the broad effects for the Spanish banking sector on this measure today: " In our view, this levy reduces banks’ internal capital generation capacity, reduces Spanish banks’ competitive position, and can potentially impact credit growth over the medium to long term."
Vanguardia write that the reforms will increase revenue by "around 10.5 billion Euros a year". For context, the Q4 rolling sum of Spanish Government revenue to Q2 2024 was E647bln. So this measure is worth ~1.6% of total revenue.
Full article behind those headlines here:
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