The Impact of Bank Tax on Lending Margin

Author:

Čeponis Paulius,Kušlys Marius,Šarapovas Tadas

Abstract

In February 2016, Poland implemented a bank tax paid by monetary financial institutions based on the assets of their balance sheets. Two years later, the same tax was proposed in Lithuania. Critics of the tax claimed that the tax burden in Poland shifted to customers by increasing the lending margin, and were this tax to be implemented in Lithuania, negative economic consequences would be likely. The aim of this paper is to estimate the potential impact of the bank tax on the lending margin in Lithuania by evaluating the case of Poland. Currently, research studies do not provide a definitive answer about the effects of bank taxation, mainly because various types of bank tax exist. Further research of the bank tax implemented in Poland could provide more information about the consequences of the bank tax applied to the assets of financial institutions. Also, a previous investigation of Poland’s bank tax was limited by a short time series. Currently, a more accurate analysis could be done by using data over a longer period of time. Following previous research, difference-in-differences estimation is used to evaluate the impact of the policy change and uses data from the period 2012 to 2020. The results of the analysis are significant and show that the bank tax had a positive impact on lending margins in Poland by an average value of 0.39%. The descriptive analysis of the Herfindahl index shows that the banking sector of Lithuania is highly concentrated, implying that the tax burden would be shifted to bank customers by increased lending margins. In this way, the banking sector in Poland managed to avoid paying the levy by shifting the burden onto consumers. The same outcome is to be expected in Lithuania. The findings of the paper suggest that Lithuania should consider alternative ways of taxation since increased lending rates could have a negative effect on the overall economy of the country.

Publisher

Kaunas University of Technology (KTU)

Subject

Economics and Econometrics,Engineering (miscellaneous),Business and International Management

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3