European Markets: Shares fell due to fear of tax on banks, what is the news?

News Topical, Digital Desk : European stock markets remained weak on Friday. A major cause of concern for investors was the discussions about imposing additional taxes on banks in Britain. Due to this, there was a huge decline in big banking stocks like NatWest, Lloyds and Barclays. These stocks have fallen by 4 percent or more today.

Why is there pressure on British banks?

A report by a think-tank Institute for Public Policy Research (IPPR) suggested that the government should impose additional taxes on banks. The report argues that banks have made "windfall profits" in recent times. Banking stocks tumbled after this news. During the session, NatWest fell 5.4 percent, Lloyds 4.5 percent and Barclays 3.8 percent. What is the opinion of experts According to Russ Mould of AJ Bell in a CNBC report, traders are now wondering whether the banks' period of bumper profits, dividends and buybacks could be in danger. At the same time, there is a fear that if the tax increases, the banks' ability to distribute loans may be affected, which will also affect business confidence. However, he also believes that losing the trust of investors will only increase difficulties for the government, in such a situation the government will take cautious steps. What does Citi's report say? Citi analysts believe that the debate on increasing tax on banks has been going on for many years, but it is not easy to implement. Due to the new tax, banks may move towards more risky investments. The report says that the possibility of increasing tax cannot be ruled out, although it is possible that the government may take cautious steps. 
 

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