Bank levy legislation
A revised draft copy of the Bank Levy Manual has been released. The 189 page document is intended to provide guidance on the draft legislation published on 9 December 2010. The bank levy is expected to apply to all UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups for periods of accounts ending on or after 1 January 2011.
The Manual covers who is chargeable to the levy, how to determine the chargeable period, the financial statements which determine the chargeable equity and liabilities and the steps to determine chargeable equity and liabilities.
The bank levy is designed to encourage banks to take on less risky funding profiles, improve regulatory standards and enhance the financial stability of the UK banking industry.