British bank shares fell?
Because the IPPR has proposed an exceptional tax on bank profits resulting from interest earned on its reserves held with the Bank of England (estimated at مليار22 billion a year).
Which banks are most affected?
NatWest shares were down about 5 percent, while Barclays and Lloyds were down about 3.4 percent.
Why is the proposal worrying investors?
Because this tax threatens the quality of banks’ future profits, it may make London less attractive as a global financial centre.
What is the position of the British government?
The Finance Ministry stressed that the debate is still open, and that the goal is to address the budget deficit, while seeking not to harm growth.
What is the market waiting for now?
Investors are waiting for the next budget announcement to see if the tax will actually apply or remain a political pressure card.
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