The European Tax Observatory said that banks operating in the European market are still active in tax havens around the world, by depositing 14 percent of their annual profits in those havens.
The observatory said in estimates on Monday that these banks have transferred 14 percent of their profits annually (or $ 23 billion) over the past seven years to these havens.
The European Tax Monitor study was based on data from 36 European banks operating in 11 countries within the bloc.
The data includes net bank income, earnings before taxes, taxes paid, and the number of employees in each country where these banks have a branch.
The study identified 17 countries and territories as preferred destinations, including the Bahamas, the Virgin Islands, and the Cayman Islands.
According to the study, the effective tax rate paid by the 36 banks in the sample is on average only 20 percent, compared to the 35 percent average in the bloc.
It also pointed to an increase in the profitability of employees in tax havens than others, as the average profitability per employee is 283,000 euros in the havens, compared to 68 thousand euros in others.
HSBC topped the list, accounting for more than 62 percent of its pre-tax profits in tax havens between 2018 and 2020.