Bank Capital and the Minimum Corporate Tax
Bank Capital and the Minimum Corporate Tax
| Autoři: | Alessandro Chiari |
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| Publikováno v: | IES Working Papers 9/2026 |
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| Klíčová slova: | Firm Behaviour, International Banking, Tax Havens, Country-by-Country Reporting |
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| JEL kódy: | F23, G21, H22, H32 |
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| Citace: | Chiari A. (2026): " Bank Capital and the Minimum Corporate Tax " IES Working Papers 9/2026. IES FSV. Charles University. |
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| Abstrakt: | This paper examines whether the Pillar Two Global Minimum Tax reduces bank profitability and regulatory capital, and for which banks the effects are strongest. We use a quarterly exposure-based differencein differences design around 2024Q1, where treatment intensity is defined by pre-2024 low-tax exposure among in-scope banks. The analysis uses a quarterly bank-level panel for 2014–2024 and exploits predetermined cross-sectional heterogeneity in low-tax exposure while controlling for bank and quarter fixed effects. The headline estimates show that post-2024 profitability and capital buffers decline more for high-exposure banks: profit after tax falls by about 2.2 basis points of assets per quarter and Tier 1 buffers by about 0.09 percentage points in the baseline specification. Higher low-tax exposure is not interpreted as vulnerability per se. The downside channel is concentrated where high pre-reform low-tax exposure coincides with limited initial capital headroom: event-study, placebo, matched-sample, and split-sample evidence all point to larger post-2024 capital-buffer compression for thin-buffer banks. Overall, the results indicate modest average effects but meaningful tail risk for banks that combine high minimum-tax exposure with thin initial capital buffers. |
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| Ke stažení: | wp_2026_09_B_chiari |
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