Just a few months before the so-called liquidity crunch hit its peak, and after the subsequent enactment by the Italian government of a number of decrees in the non-tax field aiming at supporting banks and financial markets as a whole, the government issued Decree-Law 112 of 25 June 2008, thereby introducing new rules that will result in an additional tax burden for banks and other financial institutions. Among the effects of this Decree-Law considered by this article, are the new limitations for financial institutions on the deduction of interest payable and of other financial expenses for purposes of corporate income tax and the regional tax on productive activity.