PLANS revealed last week to reduce the risk of future failures in the global banking sector have been heavily criticised by the industry.

This is particularly the case in countries such as Canada and Australia, which believe they already have a sturdy banking system in place.

The levy, described as a financial activities tax, is one of the measures being proposed by the International Monetary Fund ahead of the G20 summit in June, and would take a cut of an institution’s profits and staff remuneration, including bonuses.

But banks and their bosses claim both will hit profits hard, not reduce the risk of future failures and reduce their ability to lend to businesses.

And while the Association of Guernsey Banks is so far remaining tightlipped on what it thinks of the possible impact of the proposals, KPMG tax partner Tony Mancini (pictured) said it was to be expected that Canada would be opposed to the concept of global levies, but that the proposals on a general basis raised other questions.

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