A financial transaction tax rate set between 0.1 and 0.5 percent may make an FTT seem innocuous, but it would have a significant negative effect on investors, the economy and the banking industry.
Author Curtis Dubay
MMT has little chance of becoming law in the next few years, but the next election cycle could improve its chances. It is something for banks to keep a watchful eye on.
The rapid growth is attributable largely to nonbanks. Should this group of loans start underperforming, the risk to the banking sector is relatively low.
Banks need to make clear that IOER payments are not a subsidy for them.