European bank shares tumbled after Italy approved a 40% windfall tax on banks for 2023
A gauge of euro zone banks fell 3.7%, and was set for its biggest daily drop since the turmoil in the banking sector in March, when Credit Suisse collapsed. Italy’s banks led losses. Its two biggest lenders, Intesa Sanpaolo\n \n and UniCredit\n \n , fell 7.9% and 6.6% respectively. “These government interventions in Europe do not help provide the necessary stability to lower the risk premium attached to the eurozone.
The fall-out touched other banks in the currency bloc, including Spain’s Banco Santander\n \n , which fell 3%, and Germany’s Deutsche Bank\n \n , down 2.7%. For 2023 alone, Italy will tax 40% of banks’ net interest margin, a measure of income banks derive from the gap between lending and deposit rates. The government expects to collect less than 3 billion euros from the measure, sources close to the matter told Reuters.
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