Forcing the State’s three banks to pay €150 million in the bank levy this year could lead to “further cost cutting” and higher costs for consumers, the Department of Finance has warned.
Officials said that maintaining annual income from the levy as KBC and Ulster Bank departed the Irish market would leave AIB, Bank of Ireland, and Permanent TSB to foot the full bill.
They said forcing the three banks to bear a “higher share” of the levy would ultimately hit consumers in the form of higher charges and lending rates.
