Bank Levy

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Dictionary Says

Definition of 'Bank Levy'

1) A type of taxation system on financial institutions, in which banks are forced to pay government taxes over and above any normal corporate taxes they may incur. This is done in order to maintain financial discipline and prevent outlandish spending, bonuses or possible overly risky behavior. Bank levies are generally viewed as punishment to financial institutions.

2) When a bank account is frozen due to a creditor trying to get the debtor to repay its debt. A bank levy can occur due to either unpaid taxes or unpaid debt. The IRS usually uses this method the most, but other creditors can use this method as well.
Investopedia Says

Investopedia explains 'Bank Levy'

1) Bank levies came into prominence following the 2008 global financial crisis, when many of the world's financial institutions were bailed out by their national governments to avoid a potentially even more disastrous outcome than what had already occurred. Subsequently, many economic leaders and pundits called for a tax on banks to prevent excessive employee bonuses, especially considering that many of the financial institutions would have ceased to existed had it not been for publicly funded government bailouts.

2) A bank levy is not a one-time event. A creditor can request a bank levy as many times as needed, in order to be repaid the debt due. Most banks charge a fee to their customers for processing a levy on their account. Some types of accounts, such as social security, income cannot be levied.
Search results for

'Bank Levy'

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    ... Read More »; In-Depth Guide To Estate Planning. The process of planning your estate
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    ... While this might sound good, keep in mind that if the balance dips below
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  • Bank Overdraft Changes: What You Need To Know - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0210/Bank-Overdraft-Changes-What-You-Need-To-Know.aspx
    ... July 1, 2010 that will impact the overdraft charges that banks levy on its ... Reserve,
    perhaps to quell the anger from the public over the "bank bailout." Banks ...

  • What New Tax And Regulatory Changes May Mean For You ...

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    ... Bank of America tried to levy a $5 month charge for its ATM-debt card users this
    year, but that became a total political fiasco, forcing the bank to retract ...

  • IRS Asset Seizures: Could It Happen To You?

    http://www.investopedia.com/articles/tax/09/enforced-collections.asp
    ... when dealing with levies is to convince the IRS that the levy will directly ... He has
    also worked in retail, discount and bank brokerage systems and is currently ...

  • When You Can't Pay Uncle Sam

    http://www.investopedia.com/articles/tax/09/cant-pay-uncle-sam.asp
    ... if the final number on your 1040 is larger than the number in your bank account. ...
    Four to six months later, you will receive a final notice of "intent to levy". ...

  • Condo-Buying Walkthrough: Condominium Fees | Investopedia

    http://www.investopedia.com/university/condo-buyers-guide/condo-buyers-guide6.asp
    ... too, can deplete a development's reserve funds, forcing the association to levy
    a special ... on any unpaid fees, and either the association or a bank can initiate ...

  • Buy High And Sell Low With Relative Strength

    http://www.investopedia.com/articles/trading/08/relative-strength.asp
    ... Conclusion Test results from studies such as the one conducted by Robert Levy
    illustrate the benefits of relative strength and ... Forex Broker Summary: Saxo Bank. ...

  • Investigating The Securities Police

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    ... mission, FINRA has the enforcement authority to discipline member firms, including
    the ability to levy fines and ... Wild Incentives For Opening A Bank Account. ...

  • Direct Access Trading Systems

    http://www.investopedia.com/articles/trading/03/020503.asp
    ... Finally, most DATs would levy a certain charge for the use of their software, which
    tend to fall between $250 and $300 per month ... Forex Broker Summary: Saxo Bank. ...

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