The world's top economies today scrapped plans for a universal global bank tax.
Finance ministers from the Group of 20 countries ended a two-day meeting to review progress on a string of initiatives agreed last year to make the financial system safer and protect taxpayers from having to pay for bank rescues again.
Attempts to introduce a global bank levy met opposition from Japan, Canada and Brazil, whose banks needed no public aid during the worst financial crisis since the 1930s.
"There is no agreement to proceed with an ex ante bank tax," said Canadian minister for finance, Jim Flaherty.
The G20 said it recognised there was a range of policy approaches and that it will approve a set of principles later this month in Toronto on how to protect taxpayers.
British finance minister George Osborne reiterated his pledge to introduce a UK bank tax regardless of what other countries do and will spell out his plans in a budget report on June 22nd.
"Different countries will do different things but to have it under the umbrella of the G20 is going to be helpful," Mr Osborne told reporters.
Reuters