Today’s need-to-know storiesItaly’s deputy prime minister calls for windfall tax on banks

Italy’s deputy prime minister Matteo Salvini has proposed a three-year levy on the country’s 10 largest banks as part of the government’s 2027 budget, arguing that lenders should contribute more to public finances.

Salvini called for a 5 per cent annual tax on large lenders if their collective annual earnings reach €30bn for the year. To justify the measure, he pointed to combined first-half profits of almost €12bn at Intesa Sanpaolo and UniCredit, Italy’s two largest banks.

The proposal comes after the government introduced a package of tax measures targeting the financial sector in its 2026 budget, which is expected to raise several billion euros from banks and insurers. 

Salvini’s plan is likely to face resistance from parts of Italy’s governing coalition and the banking sector. Coalition partner Forza Italia opposes additional levies, while Intesa Sanpaolo chief executive Carlo Messina has previously warned the government against making bank tax increases an annual habit.

The debate over bank taxes is also growing elsewhere in Europe. In the UK, answering a question from The Banker, Citigroup chief executive Jane Fraser warned that a windfall tax could damage London’s competitiveness and drive investment towards rival financial centres.

Swiss lawmakers delay vote on tougher UBS capital rules

Swiss lawmakers on Tuesday delayed an initial vote on tougher capital rules for UBS, because some committee members argued for softer measures than those proposed by the government in response to Credit Suisse’s collapse.

The government’s plan could force UBS to hold around $20bn more in additional common equity Tier 1 capital. At the centre of the proposal is a requirement for UBS to raise the capitalisation of its foreign subsidiaries to 100 per cent from 60 per cent, using CET1 capital alone. 

However, the upper house committee is considering amendments that would allow UBS to meet part of the increase using cheaper additional Tier 1 bonds.

UBS, which acquired Credit Suisse after its 2023 collapse, has argued that the proposed requirement is excessive and would weaken its competitiveness and Switzerland’s position as a financial centre.

The upper house’s Economic Affairs and Taxation Committee will resume discussions on August 31, with a vote in the chamber still targeted for September.

Revolut scales down partnership with WeWork

Revolut has scaled back its WeWork partnership across Europe following a disagreement over an increase in the workspace provider’s fees.

As reported by the FT, customers on Revolut’s Metal and Ultra plans have lost access to several prime WeWork locations in cities including Paris, Brussels, Milan, London, Edinburgh, Dublin and Prague.

Revolut renegotiated the partnership to avoid “withdrawing the benefit or passing increased costs” on to premium members, one person familiar with the matter told the newspaper. 

WeWork said the fee increases were due to “economic factors” alongside “increased occupancy levels and demand” at certain locations.

The WeWork partnership is a key benefit of Revolut’s premium plans, which generated more than £700mn in subscription revenue for the digital lender in 2025, up nearly 70 per cent on the previous year. 

Under the new agreement, Revolut customers can access around 265 WeWork sites, more than half of which are in the US.  

Revolut said it remained committed to offering members “premium workspace solutions and other global lifestyle benefits”.

PBoC appoints Deutsche as first foreign renminbi clearing bank

Deutsche Bank has been appointed by the People’s Bank of China as Europe’s first foreign renminbi clearing bank.

Operating in Frankfurt, the bank will provide clearing and settlement services for cross-border renminbi transactions, giving European financial institutions and companies greater access to China’s payment systems and offshore renminbi liquidity.

“By connecting onshore and offshore renminbi ecosystems and expanding renminbi use cases across Europe and key trade corridors, we aim to help clients capture new opportunities arising from the evolving renminbi landscape,” said Leo Yin, president of Deutsche Bank China.

Deutsche Bank has been involved in efforts to expand the renminbi’s international use for more than a decade, joining the Cross-Border Interbank Payment System, China’s alternative to Swift, as a direct participant in 2015.

HSBC’s insurance CEO departs bank 

HSBC’s global chief executive for insurance business is to leave the bank after more than 20 years. 

Edward Moncreiffe is stepping down two years after he took over the role, according to Reuters. He is said to be leaving in September for external opportunities. 

HSBC plans to appoint two executives to replace Moncreiffe, splitting the role in two, according to one of the sources. 

Moncreiffe’s departure is the latest high-profile exit from the bank, with head of banking for Europe and the Americas Gerry Keefe resigning in April, and cash equities trading heads James Grafton and Steve Jobber departing in February. 

Prior to taking on the global insurance role, Moncreiffe had spent seven years as CEO of HSBC Life Hong Kong and Macau. Last month, the bank agreed to sell the HSBC Life business in Singapore to Allianz in a deal worth S$2.7bn ($2.1bn). The acquisition is expected to close in the first half of 2027. 

China Everbright executive director steps down 

China Everbright Bank’s executive director Yang Bingbing has stepped down from the bank halfway through his term.

Yang, who also served as vice-president, submitted his resignation to the bank on August 11 with immediate effect. His term as director at the joint-stock commercial bank had been due to run until November 2028. 

In an announcement released by the Beijing-based bank, it stated his departure was due to “work adjustment” and that he will not hold any position at the bank or its controlled subsidiaries. 

“Yang Bingbing confirmed that he has no disagreements with the bank’s board of directors, nor are there any matters related to his departure that need to be notified to the bank’s shareholders,” the bank said in a statement. 

Yang joined Everbright Bank in 2005, before being appointed vice-president in July 2020 and executive director in June 2024. 

Everbright Bank is the 12th largest bank in China by asset size.