The Economic Case for the Bank Levy


An edited version of this paper was published by Australian Financial Review, Wednesday 10 May

In this Financial Policy Brief, Professor Kevin Davis examines the Economic Case for the Bank Levy. In announcing the levy on certain liabilities of the big banks, the Treasurer eschewed attempting to provide an economic case to justify the new charge. Politically, that is probably sensible. The banks won’t get much public sympathy and the complexity of the economic argument will not be grasped by many.

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This FPB was prepared by Professor Kevin Davis, Research Director at the Australian Centre for Financial Studies.

The ACFS Financial Policy Brief series provides independent analysis and commentary on current issues in financial regulation, with the objective of promoting constructive dialogue among academics, industry practitioners, policymakers and regulators and contributing to excellence in Australian financial system regulation.

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