Italy shocks banks with 40% windfall tax for 2023
www.reuters.com
Italy dealt a surprise blow to its banks and sent shockwaves across the sector in Europe by setting a one-off 40% tax on profits reaped from higher interest rates, after reprimanding lenders for failing to reward deposits.

Italy dealt a surprise blow to its banks and sent shockwaves across the sector in Europe by setting a one-off 40% tax on profits reaped from higher interest rates, after reprimanding lenders for failing to reward deposits.

  • MxWarpOP
    7·
    1 year ago

    While it might not directly relate to Canadian Finance News, I believe we could implement a similar regulation for big banks in Canada. Currently, none of these banks have raised their deposit interest rates, and I think this practice should become the standard.

    • deltatux :mapleleaf:@mstdn.ca
      1·
      1 year ago

      @mxwarp I mean, what incentives do these banks have to pay higher interest? They own like >80% of the market and their name recognition alone draws deposits.

      Keep in mind that paying higher interest rates is a way to attract deposits, when your name recognition & size can already do that for you, why pay more?

      As a consumer, people need to consider shopping around. Far too many Canadians believe there’s no choice when in fact there is.

      For higher paying options, see: https://highinterestsavings.ca/chart

      • MxWarpOP
        1·
        1 year ago

        Looks like they finally got the memo!

        • deltatux :mapleleaf:@mstdn.ca
          2·
          1 year ago

          @mxwarp This is just a promo rate, all the Big Banks & their subsidiaries do this. They boost the rate for 3-4 months and then you earn their base crappy rate thereafter.

          Scotiabank, Tangerine, Simplii & etc. have been doing this for years.

          The options in the link I provided previously are non-promo rates.

          Other options incl. fintechs like WealthSimple offer 4.5% if you have $100k deposited or invested with them, or via money market funds or investment savings account which all pay >4%.