Over the next few days or weeks, the European Central Bank (ECB) may issue a non-binding opinion on the suggested tax on Spain’s banks after reviewing its impact on the solvency of the sector.

This is according to comments from senior ECB central bankers on Monday.

Back in July, the country’s ruling coalition introduced a bill in parliament to issue a temporary tax on banks, with the aim of generating €3 billion by 2024, Reuters news agency reports.

Vice-president of the ECB, Luis de Guindos said the central bank had set up a team of experts covering areas including financial stability, economy, monetary policy and supervision to form an opinion.

"In the coming days or weeks we could see a non-binding opinion," De Guindos stated.

Furthermore, the ECB vice-president said that a banking tax may have a negative impact on the sector and risk harming its solvency.

Whereas the governor of the Bank of Spain, Pablo Hernandez de Cos told lawmakers that the ECB’s evaluation would be focused around two points: how it impacts the monetary policy transmission mechanism and how it may affect the banking sector’s solvency.

Spain’s central bank governor – who is also part of the ECB's governing council - added that in similar cases certain negative aspects had been pinpointed in terms of solvency.

In July this year, De Cos said setting up a tax that didn’t end up impacting credit was not a simple task. The levy would include a 4.8% charge on banks' net interest income and net commissions, the Reuters report adds.

Executives at banks including BBVA and Santander have said the proposed tax would have a direct impact on banks’ profitability and interfere with competition, as the tax is aimed at banks with a turnover of more than €800 million.

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