The Spanish Banking Association (AEB) and CECA reject the extension of the temporary levy on the banking sector announced today following the Council of Ministers by the President of the Government, Pedro Sánchez, within the framework 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 context of international economic uncertainty. Furthermore, this decision to extend the levy negatively affects the competitiveness of the banking sector and confidence in the country, given that investors demand legal stability, predictability of regulations, and transparency. The European Central Bank has warned about the potential negative effects of this type of levy.
The Executive’s decision fails to comply with the obligation to review the temporary levy after two years, as contained in the law that created it, based on, among other factors, the situation of the sector at that time and the cumulative effect of said levy along with Corporate Tax; it also occurs before the courts have ruled on the appeals filed by the banking associations.
Nevertheless, the sector will continue working to provide solutions to its clients and reinforcing its commitment to society, as it has been announcing in recent months with improvements in personalized service for the elderly, financial inclusion in rural Spain, and the expansion of the Code of Good Practice for Mortgages.
