Bank insurance levy gains support at Davos

An insurance levy on financial institutions to help bail out banks in any future financial crisis has been backed at the World Economic Forum in Davos. Politicians and bankers have expressed support for the idea, while the International Monetary Fund (IMF) has described it as "practical", according to foreign media.

The levy would go into a fund which could be used to bail out the banks instead of taxpayer money.

Governments across the world have spent billions of dollars saving banks.

The insurance levy is seen by many as a more realistic option than a tax on financial transactions, often referred to as a "Tobin Tax", which has been discussed but has proved unpopular in some quarters.

The tax has been proposed by the UK and France, but has garnered less support in the US.

The insurance levy is seen as a more workable solution, not least because it has been backed by some leading bankers. Governments across the world are also trying to push through changes to banking regulation to try and prevent future financial crises happening in the first place.