The Spanish Banking Association (AEB) and CECA reject the extension of the temporary levy on the banking sector announced following the Council of Ministers by the President of the Government, Pedro Sánchez, in the context of the new Royal Decree Law.
This levy has negative effects on the generation of new credit, job creation, economic growth and financial stability, in a backdrop of international economic uncertainty. Furthermore, this decision to extend the levy has a detrimental effect on the competitiveness of the banking sector and confidence in the country, given that investors demand legal stability, predictability of rules and transparency. The European Central Bank has also already warned about the potential negative effects of this kind of levy.
The Government's decision does not fulfil the obligation to review after two years the temporary levy contained in the law that created it, depending, among other factors, on the situation of the sector at that time and the cumulative effect of this levy along with corporate income tax, and it comes without the courts having yet ruled on the appeals lodged by the banking associations.
Nonetheless, the sector will continue to work to bring solutions to its customers and to bolster its commitment to society, as it has been announcing in recent months with improvements in personalised service for the elderly, financial inclusion in rural Spain and the extension of the Code of Good Mortgage Practices.