Monday, August 22, 2016

Mish Shedlock* On
Negative Interest Rates 
Now Moving Into Retail
Negative Deposit Roundup:
UK – Royal Bank of Scotland: Negative interest rates on some large depositors start August 21. One million business customers notified. Rate not specified
Germany – Postbank: Postbank, a subsidiary of Deutsche Bank, will charge millions of depositors €3.9 per month starting November. “Vast majority” of Postbank’s 5.3 million giro account holders impacted.
Germany – Raiffeisen: German credit cooperative Raiffeisen announced it would begin applying negative rates on customer deposits in September. The policy applies to deposits in excess of 100,000 euros. The cooperative imposes a negative rate of -0.4%, the same rate the European Central Bank charges for ‘excess’ reserves held at the ECB.
Ireland – Ulster Bank: The Irish lender Ulster Bank, part of RBS, imposes negative rates on large corporations, but does not apply such charges to small businesses or individual customers.
Ireland – Bank of Ireland: The bank will charge large companies to hold their money on deposit, making it the first domestic Irish lender to impose negative interest rates. The bank, which is 14 per cent owned by the Irish government, has warned large corporations and institutions that it will charge 0.1 per cent for deposits above €10m starting October.
UK – HSBC. The multinational bank HSBC said last year it would start charging other banks for deposits held in currencies where negative interest rates apply.
Switzerland – Alternative Bank Schweiz AG: ABS informed its clients last year that they would have to pay a charge of at least 0.125% to maintain their accounts at the bank starting in 2016.
LINK HERE to the article

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