The French Banking Federation opposes plans to impose a levy on banks, which would reduce their ability to lend to the economy, the body's chief executive said Thursday.

"We are against any proposal which comes to the result that there is a levy or a tax on banks," Ariane Obolensky told Dow Jones Newswires. "The result will be that the economy will receive less finance."

The European Commission Wednesday proposed that European Union governments levy a tax on banks and use the proceeds to create a fund dedicated to ensuring the orderly failure of troubled banks.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.