Table 4: Existing evidence on the incidence and impact of bank levies Study Impact on lending Impact on Impact on capital / Notes / deposit rates economy leverage / risk Countries studied Devereux et — — Banks reduced — al. (2013) their leverage, but less capitalised banks also increased risk study (EU taking (on the levies) asset side) Lending rates and Moderate — — Kogler (2015) net interest increases in margins increased lending rates not moderately, and by suggestive of large more in economic impact study (EU concentrated and levies) poorly markets. Deposit rates unaffected. Deutsche Affected banks — — — Bundesbank reduced their (2014) lending and increased deposit Germany rates. No significant change in lending rates. Affected banks No significant — This paper is a Buch et al (2016) reduced lending impact on peer-reviewed and increased new extension of Germany deposit rates, Bundesbank (2014) particularly deposits. Banks shift the tax — — burden to and customers by Havrylchyk raising interest and (2013) fee margins for borrowers with Hungary outstanding loans (rather than new loans).
Table 4: Existing evidence on the incidence and impact of bank levies Study Countries studied Impact on lending / deposit rates Impact on economy Impact on capital / leverage / risk Notes Devereux et al. (2013) study (EU levies) — — Banks reduced their leverage, but less banks also increased risk taking (on the asset side) — Kogler (2015) study (EU levies) Lending rates and net interest margins increased moderately, and by more in concentrated and poorly capitalised markets. Deposit rates unaffected. Moderate increases in lending rates not suggestive of large economic impact — — Deutsche Bundesbank (2014) Germany Affected banks reduced their lending and increased deposit rates. No significant change in lending rates. — — — Buch et al (2016) Germany Affected banks reduced lending and increased new deposit rates, particularly deposits. No significant impact on — This paper is a peer-reviewed extension of Bundesbank (2014) and Havrylchyk (2013) Hungary Banks shift the tax burden to customers by raising interest and fee margins for borrowers with outstanding loans (rather than new loans). — —
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