ECB Cautions Spain About Hurting Bank Solvency With Tax Plan (1)

European Central Bank Vice President Luis de Guindos had this advice for the Spanish government as it prepares to slap banks with a windfall tax: Don’t hurt their solvency.

Raising the tax burden on lenders also mustn’t crimp lending or lead to higher credit costs for families and business, Guindos said during the ECB’s press conference in Frankfurt Thursday after it announced a bigger-than-expected hike to interest rates.

“The tax should not imperil credit extension growth because this is important for economic activity,” Guindos said when asked his opinion about it. “The tax should not damage the solvency of the ...