The extent to which banks benefit or retard the development of the real economy has been brought into sharp focus since the global financial crisis. Government interventions and policies aimed at containing excessive risks in the banking industry are likely to have implications for funding...

Since the global financial crisis, the tax treatment of banks has gained interest in academic and public policy arenas. In this paper, we investigate the stock price reaction of a small sample of commercial banks that were affected by the sudden introduction of a bank levy in Australia. The...

We test opposing hypotheses regarding the previously unexplored effects of taxes on bank liquidity creation using the exogenous shock of the Tokyo bank tax. We find reduced liquidity creation, consistent with empirical domination of the Risk Absorption Hypothesis over the Financial...