The banking sector rejects the extension of the temporary levy

The Spanish Banking Association (AEB) and CECA reject the extension of the temporary levy on the banking sector announced after the Council of Ministers by the President of the Government, Pedro Sánchez, within the framework of the new Real Decreto Ley.

This levy has negative effects on the generation of new credit, job creation, economic growth, and financial stability, in a context of international economic uncertainty. Furthermore, this decision to extend the levy negatively impacts the competitiveness of the banking sector and confidence in the country, as investors demand legal stability, predictability of regulations, and transparency. The European Central Bank has also warned about the potential negative effects of such a levy.

The Executive’s decision does not address the obligation to review the temporary levy every two years as stated in the law that created it, based on, among other factors, the situation of the sector at that time and the cumulative effect of this levy alongside the Corporate Tax, and it is made without the courts having yet ruled on the appeals presented by banking associations.

Nevertheless, the sector will continue to work to provide solutions to its clients and reinforce its commitment to society, as it has been announcing in recent months with improvements in personalized care for the elderly, financial inclusion in rural Spain, and the expansion of the Code of Good Practice for Mortgages.