Bank levy deal discussed by seven nations at G7 meeting

08 February 2010 In Financial Careers

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Bank levy deal discussed by seven nations at G7 meeting The seven most advanced nations have been discussing the possibility of imposing a tax on banks at a G7 meeting in Canada.

It is hoped that if the levy was introduced it would help to insure the economy in case it experienced another financial crisis.

US Treasury secretary Timothy Geithner and UK chancellor Alistair Darling were among those speaking at the event.

Mr Darling said: "We discussed in the longer term whether or not it would be appropriate to have a levy on the banking industry to reflect the costs that have been imposed as a result of what has happened. It's early days but ... we agreed to work together on this."

The tax, which could feature a transaction tax on deposits held, will not be introduced until support has been shown.

Although support was shown at the meeting, the G7 ministers are now seeking further backing for the levy.

It is doubtful the members of the G20, which includes economies such as China, India and Brazil, would agree to implementing a tax on banks, a US Treasury official told the Financial Times.

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