Doubling a special bank levy

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On 28 November 2019, it was in shortened legislative proceedings approved the National Council of the Slovak Republic draft amendment to Act No. 384/2011 Coll., on special levy on selected financial institutions, specifically on banks and branches of foreign banks, which was aimed to increase the rate of the special levy.

This act was originally introduced on 1 January 2012, in response to the 2008 financial crisis, and its purpose was to ensure that the banking sector makes a fair contribution to the financing of costs to deal with potential financial crises in the future. However, the act was determined for a special levy on banks until 2020 only and at the level of 0.2% of the value of banks’ liabilities reported in the balance sheet.

The amendment changes the annual rate of the levy for 2020 and subsequent years up to an amount of 0.4%. The purpose of this proposed amendment is to increase the financial capacity of funds from the special levy in order to strengthen the financial stability and the ability to deal with potential emergencies.

The Act comes into force on 1 January 2020.


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