Banks may launch lawsuits if a euro zone bank levy is imposed on the industry to help fund a rescue of Greece as it would unfairly punish banks not exposed to the country, two bank industry sources said today.

A tax on euro zone banks to raise €10 billion a year for three years has been proposed, but that would send a completely wrong signal by punishing banks regardless of their holdings, the sources said.

Private sector creditors to Greece, being coordinated by the Institute of International Finance, are on track to present one complex proposal to euro zone leaders meeting tomorrow. It would not include a levy, but will include a range of options, the two sources said.

Reuters