Italy’s Banks Seen Sidestepping Meloni Tax With Payouts Intact

Most of Italy’s banks probably won’t pay the country’s new tax and choose to boost their capital cushions instead.

That’s because the law, adopted by the Italian Parliament on Thursday, is structured in a way that will likely allow most banks to meet the opt-put conditions while keeping payout promises intact, according to analysts and experts. Banks don’t have to pay the levy if they add money to their reserves instead.

Boosting capital “is the best option by far” for Italy’s banks, said Rossella Locatelli, a professor of banking and finance at the University of Insubria, near Milan. That’s ...