If tax on assets is enforced 5 years, the banks will recover the loses in 37 years – PwC survey says

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If the tax on banks’ financial assets, as provided by the Emergency Ordinance 114/2018, is enforced at the level of 1.2% for five years, the banks will recover the costs in 37 years, a survey conducted by PwC reveals.

“If the tax is enforced one year, the recovery of losses will be made in five years, if enforced three years the recovery will be complete in 16 years and if enforced five years the recovery of losses will last 37 years,” the survey reds, quoted by ziare.com.

The estimations have considered that the tax on banks’ financial assets is this year of 1.2%, as set by GEO 114, given the 3-month and 6-month ROBOR average in the last quarter of 2018. Thus, the tax would be 0.1-0.4%, if the average ROBOR applied to loans is 2-4%.

The survey also reads that if the financial assets of the banking system are considered, at the end of 2018, of about RON 438 billion (BNR figures) the amount to be paid by banks would be of about RON 5.3 billion.

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