The announced introduction of a bank tax is already affecting bank customers. Banks are beginning to raise loan spreads, and it is a matter of time before fees for other banking products increase.
Good Finance Bank increased margins by 0.65 pp, and Good Credit by 0.40 pp explaining directly its movements with the planned introduction of a “bank tax”.
Good Credit is extremely surprising
And the price conditions change also for applications submitted before December 9, if the loan agreement has not been signed by that time. This means that the rule that has been in force so far is that the date of submitting the application is no longer valid for determining the price conditions. This is the situation we last met during the crisis in 2008. Moreover, it cannot be excluded that other banks will also change their offers soon.
The draft Act on the tax on certain financial institutions, commonly known as bank tax, presented by the head of the parliamentary Public Finance Committee, assumes that all banks, branches of foreign banks and cooperative savings and credit unions whose total assets exceed 4 billion will have to pay this tax. Golden. The tax will also apply to insurance institutions. The monthly tax rate will be 0.0325% on the value of assets for banks and 0.05% for insurers. The planned date for implementing the new tax is February 1, 2016.
From the point of view of current and future bank customers, it is important how this translates into service costs. Borrowers who already repay their loans do not have to be afraid of an increase in margins or fees directly related to their liabilities. The provisions of loan agreements must be observed and the bank may not increase the margin.
However, one should expect to transfer this fee to other banking products. We can expect an increase in account fees or more stringent exemption conditions. We can also expect increases in payment card fees or a reduction in free withdrawals from ATMs.
New loans – will be more expensive
In a different situation there are people who are just planning to take out a loan. In this case, the bank has the option of using a higher margin, from which a bank tax can be covered. However, the key question is how much the price of the loan will increase.
For example, for a loan of 100,000 USD, with an interest rate of 3.80% and a 25-year repayment period, the bank will be required to pay a total of approximately USD 5,700 bank tax throughout the loan period. It is the sum of monthly payments (0.0325%) calculated from the current debt.