Italian Banks’ Payout Pledges Seen Feasible After Tax Cap
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The Italian government’s partial u-turn on plans for a new banking windfall tax will likely allow lenders to keep their promises on shareholder returns intact, according to analysts.
The finance ministry said late Tuesday that the levy won’t exceed 0.1% of a firm’s assets, after Deputy Prime Minister Matteo Salvini’s announcement of a 40% tax on lenders’ extra profits the day before wiped out $10 billion from Italian banks’ market value.