France will propose this week new fees for its banking industry to pay for increased supervision.
Christine Lagarde, finance minister, yesterday ruled out a 10 per cent tax on banking profits, a proposal due to be debated today after its recent approval by the finance committee of the lower house of parliament.
She said the tax would do more harm than good and said she would suggest other ways of raising finance from the banks to pay for tougher supervision. The minister is looking at an industry levy, determined by a bank's size and risk profile, the Financial Times has learnt.
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