Investing.com - The European financial sector topped the leaderboard in European midday trade on Wednesday, getting a lift from Spanish lenders after the country's Supreme Court determined that customers, and not banks, have to pay for a mortgage-related tax.
Under a previous ruling in October, the court ruled that banks had to pay the tax.
The decision spared them from potentially having to reimburse borrowers who for years have paid the tax themselves.
Budget Minister Maria Jesus Montero said on Tuesday that a ruling to make banks pay the tax retroactive over four years would have cost them 5 billion euros.
The European banking index was up 1.8% by 6:45AM ET (1145GMT), making it the best performer of the day, with Spanish banks driving gains.
Banco Santander (MC:SAN) and BBVA (MC:BBVA), the nation’s two biggest lenders, gained 3.1% and 2.7% respectively in Madrid.
Smaller banks were also higher. Banco Sabadell (MC:SABE) rose 3% and Caixabank SA (MC:CABK) gained around 4%.