Arbeitspapier

Interactions between bank levies and corporate taxes: How is bank leverage affected?

Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis yields three main results: The introduction of bank levies leads to lower leverage as liabilities become more expensive. This effect is weaker the more elevated corporate income taxes are. In countries charging very high corporate income taxes, the incentives of bank levies to reduce leverage turn insignificant. Thus, bank levies can counteract the debt bias of taxation only partially.

ISBN
978-3-95729-750-1
Sprache
Englisch

Erschienen in
Series: Deutsche Bundesbank Discussion Paper ; No. 43/2020

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Economics of Regulation
Thema
bank levies
debt bias of taxation
bank capital structure

Ereignis
Geistige Schöpfung
(wer)
Bremus, Franziska
Schmidt, Kirsten
Tonzer, Lena
Ereignis
Veröffentlichung
(wer)
Deutsche Bundesbank
(wo)
Frankfurt a. M.
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bremus, Franziska
  • Schmidt, Kirsten
  • Tonzer, Lena
  • Deutsche Bundesbank

Entstanden

  • 2020

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