The Lithuanian government is proposing a solidarity fee for banks, as they receive revenue due to an “abnormal” situation

“In connection with this situation, which is, I will simply say, abnormal, extraordinary and related to the fact that, with rapid changes in monetary policy, the transmission mechanisms that would redistribute these [negaidītos ieņēmumus] between society groups, a decision was made that the state will tax part of the net interest income,” Šimonīte told reporters.

She said that the government decided to intervene because, according to her, the situation is not very good, but the banks’ profits are higher than usual, even though the banks are not making any effort.

“Banks keep quite large reserves in the central bank, they receive quite large interest for it, of course they also receive higher interest from their customers, although they do not have any expenses in connection with this. (..) Banks have started to make a profit that does not depend from the efforts of the banks themselves. There are not too many economic instruments to regulate this increase in the pockets of the banks, so that it is somehow redistributed to society,” said the Prime Minister.

Šimonite pointed out that banks will have to pay a smaller solidarity fee if they increase the interest on term deposits and reduce the loan interest, thus earning less net interest income.