G20 Skips Bank Tax; Settles for Common Guidelines

The Group of 20 nations have agreed to implement "principles" that protect taxpayers and reduce the risks of further crises instead of imposing a global bank tax for bailouts, says the South China Morning Post.


Citing a statement issued by the G20, the Post says that governments would take account of each country's "circumstances and options," and allow nations that suffered less during the crisis to skip imposing a tax.


"If we're living in an ideal world, a global financial tax would be a good idea but in reality, it is almost impossible to implement," Tomo  Kinoshita, an economist at Nomura Holdings, told the Post. Kinoshita adds that a global standard for capital levels at banks was a "more practical" way to help reduce the risk of a financial crises in the future.


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