Minister examining appropriate bank levy in wake of surging profits

Departure of KBC and Ulster has seen the amount collected through the levy drop from €150m to €87m

Michael McGrath: 'Other countries have gone down the road of a windfall tax but they may not have had a levy in place. We have a levy in place. That’s the vehicle we will use.'

The minister for finance said Ireland's existing banking levy will be extended in the budget and is the appropriate mechanism for banks to make a contribution to the exchequer given the surge in profits recorded this year.

Following a series of interest rate hikes by the European Central Bank (ECB) over the past year, banks across Europe have seen a surge in interest income due to the money they hold on deposit with central banks.