Germany, France mull bank tax to meet financial exigencies

European financial power houses, Germany and France are moving towards implementing a new bank levy to cover the cost of future bailouts.

The German cabinet has approved a proposal to include an annual levy on banks' balance sheets, excluding customers' deposits, that could generate up to €1.2 billion ($1.6 billion) a year.

French Finance Minister Christine Lagarde, who participated in the German cabinet meeting as part of a new push to coordinate policy between Berlin and Paris, said French officials would unveil their own plan "very soon."

The French and German governments said they want to be able to intervene early if a bank is tottering and to wind down systemically important banks, including cross-border ones. The aim is to "impose market discipline and protect public funds," a statement said.

At a joint press meet with Lagarde in Berlin after the cabinet meeting, German finance minister Wolfgang Schauble said both the countries will ask other euro zone and the G-20 members to take similar actions.

"We are supporting the introduction of bank resolution regimes in all EU member states," a joint statement by them said. Sweden has already supported such a move.