Draft legislation for a new levy on bank balance sheets has been published by the government.
The levy will apply to the global balance sheets of UK banks and the UK operations of banks from other countries and will be introduced in January 2011, the Treasury said.
From 2012, it is expected to raise about £2.5bn ($4bn) a year.
The legislation will encourage banks to take fewer risks with their funding, the Treasury added.
It hopes to achieve two objectives, according to Mark Hoban, financial secretary to the Treasury.
"Firstly, ensuring that banks make a fair contribution in respect of the potential risks they pose to the UK financial system and wider economy," he said.
"Secondly, the final scheme design incentivises banks to make greater use of more stable financial sources, such as long term debt and equity".
Banks were consulted on the legislation over the summer.
The levy is not expected to affect smaller banks and building societies.
BBC News
