Considering that government estimates put the additional cost of the non-deductibility of VAT at € million a year, the overall reduction in banks’ net profits due to these specific direct and indirect tax measures will be nearly € billion this year. High taxes mean less self-financing, less capital, less lending capacity.
A bank’s good name, the basis of a solid relationship with customers, is always a precious asset, and all the more so in times of crisis. Safeguarding and enhancing the banking system’s reputation requires irreproachable conduct in practice, no less than strict rules. Transparent and correct relations with customers protect consumers. They spur competition, ensuring full comparability of products.