Banks will be charged a rate of 0.05% in 2011 and 0.075% in 2012, an increase on the initial rates of 0.04% and 0.07% for the next two years that were announced in the emergency Budget in June.
An allowance has also been introduced rather than a threshold for the liabilities to which the levy applies.
The aim of the levy is to “encourage” banks to move to less risky funding profiles.
The Treasury said that the £2.5bn will be a “fair contribution” considering the risks the banking system poses to the wider economy, while allowing it to remain competitive.
Hoban said: “We have consulted on the design of the scheme so that it achieves two objectives: first, ensuring that banks make a fair contribution in respect of the potential risks they pose to the UK financial system and wider economy.
“Second, the final scheme design will encourage the banks to make greater use of more stable sources of funding, such as long-term debt and equity, working with the grain of our wider reform programme.”
In addition, the government aims to take on bank bonuses.
The FSA is currently revising its remuneration code and provisions will begin in the New Year that will ensure bonuses for “material risk takers” will be deferred over a number of years and are linked to the performance of the employee and their firm.
A significant portion of these bonuses will have to be paid in shares or other securities.
