Bank levy as a tool of internalisation of externalities generated by banks: Analysis of the domestic banks’ response to the introduced tax

Abstract

The main aim of this article is to present the possibility of internalisation
of negative externalities generated by banks with the use of a bank
levy introduced in Poland at the beginning of 2016. The conducted survey
takes into account Polish banks’ adaptive response to newly implemented
tax (tax optimisation) and co-effects of the group response materialised in
local interbank and sovereign debt markets. Empirical assessment of the bank
levy introduction and evaluation of its externalities internalisation potential
is based on statistical data gathered in 2015–2017.