Bremus, Franziska; Schmidt, Kirsten; Tonzer, Lena - In: Journal of Banking and Finance 118 (2020)
Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes … yields three main results: The introduction of bank levies leads to lower leverage as liabilities become more expensive. This … incentives of bank levies to reduce leverage turn insignificant. Thus, bank levies can counteract the debt bias of taxation only …