Central Bank governor councils against hiking levy substantially even as bank profits surge
Minister for Finance Michael McGrath is considering the future of the levy, introduced in 2014. It raised €87 million last year.
While an Italian-style windfall tax has been ruled out, McGrath signalled recently the levy will be extended. “We can change the nature of the levy. We can change the rate of the levy if we so choose,” he said last month.warned at an Oireachtas finance committee meeting on Wednesday against going too crazy, highlighting that while Irish banks are enjoying high earnings, their net interest margins and profit returns had long been below the European average before the recent spike.
He also suggested that margins are bound to tighten as savers move from low-yielding on-demand and current accounts to fixed-term accounts, which are offering rates of as much as 3 per cent. But the main argument against a very big increase would be the impact on banks’ capital and their capacity to lend. “At the end of the day, tax policy is a question for the Government and not for us,” he said. He’s made his point before Budget 2024 is unveiled.
España Últimas Noticias, España Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Your Morning Briefing: Spinal surgeon operated after issues first raised, Central Bank warns on inflationary budgetMore than 300,000 expected at the National Ploughing Championships, women footballers take dim view of FAI cap presentation and weather warning in place for west and south
Leer más »
Irish energy prices ‘out of line’ with Europe’, Central Bank warnsBank says high electricity costs contribute to uncertainty surrounding inflation
Leer más »
Government’s planned big spending budget could fuel inflation, Central Bank warnsThe Central Bank forecasts inflation will average at 5.4 per cent this year, but will decline to 3.2 per cent and 2.3 per cent in 2025
Leer más »
Central Bank warning, Dublin house prices slide and getting the most out of your savingsBusiness Today: the best news, analysis and comment from The Irish Times business desk
Leer más »
Central Bank 'wrong' to warn against higher spendingThe Central Bank is likely 'wrong' to caution that higher public spending will fuel inflation, a leading economist has said.
Leer más »
Irish banks consider new business model for Synch payments app to avoid Central Bank approval processSynch is backed by AIB, Bank of Ireland and Permanent TSB and was being designed as a mobile payments app to rival Revolut
Leer más »