NoRegretsCoyote
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A co-operative bank has become the first German lender to pass on the cost of negative interest rates to new retail customers with small deposits, in the latest sign of how the European Central Bank’s policy is upending the country’s banking sector.
Volksbank Fürstenfeldbruck, which is located 30km west of Munich and has just €1.8bn in assets, said that it will collect a “depositary charge” of -0.5 per cent on instant access savings accounts with deposits of €1 and above.
I see that many CU are putting limits on shares/deposits.
In this context, aren't the State Savings rates becoming more attractive?
1.0% - 1.5% net is good in the context of 0% ECB rates, negative deposit rates, and CU limits.
And the withdrawl of Rabo and others from the Irish deposit-taking market.The banking levy has definitely being a factor in the deposit rate reductions.
Two chief executives of large eurozone banks said they were also working on plans to pass the cost of negative rates on to a much larger chunk of retail savers, setting the stage for a political backlash that the banking industry hopes will lead to wider public awareness of the ECB’s policy. So far the majority of banks have charged a fee only to corporate depositors and wealthy clients with balances over €1m, but the executives said this could be extended to all customers with more than €100,000, the limit for most deposit guarantee schemes in Europe
“The whole market is looking at this,” said one of the executives. “Over time, we need to decrease the threshold at which we charge.”
Not my area, but my understanding is that any move to impose negative rates on consumers in Ireland requires CBI approval.
And yet if you read the terms and conditions of any if the banks that have made allowance for negative rates, you'll see that they specifically call out that the condition dies not apply to consumers (hint - to comply with S.149)why is it different for negative?
We're talking about CONSUMER Credit Act. It doesn't apply to corporates.AIB charge -65bps to some corps on certain balances, so they have gone above the pass on of -50bps, that's where it's interesting, they have gone above the pass on but did they get central bank approval?
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