-Germany's Bundesrat approves bank levy.
Global Banking News - 08 July 2011
The Bundesrat, Germany's upper house of parliament, has approved government plans to impose a bank levy aimed at generating funds for the rescue of troubled banks.
The upper house has revised the proposal, including exempting small financial institutions from any payments, while the threshold for paying the contribution will be raised. The levy will now be imposed on banks with a balance sheet of more than EUR300m, up from EUR250m previously.
In March, the German government approved a new law obliging banks to compensate for reduced payments in relatively better performing years, by contributing to the banking levy in bad years. The target size of the fund is EUR70bn.
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