Italy Says Windfall Tax Can’t Exceed 0.1% of a Bank’s Assets (1)

Italy issued a clarification of its new tax on banks’ windfall profits, saying the impact may be limited for some banks and the levy won’t exceed 0.1% of a firm’s assets.

Banks that have already increased the interest rates they offer to depositors “will not have a significant impact as a consequence of the rule approved yesterday,” the finance ministry said in a statement Tuesday night.

The clarification came about 24 hours after the government shocked markets with the unexpected tax, announced in off-the-cuff remarks by Deputy Prime Minister Matteo Salvini at the end of a news conference on other ...