A new report reveals that more than 300 banks in Germany are now charging some customers negative interest rates. Some are big global banks, including Deutsche Bank, Commerzbank, and ING.
300 Banks Pass on the Burden of Negative Interest Rates to Customers
Banks in Germany have been increasingly passing on the burden of negative interest rates to their clients after the European Central Bank (ECB) adopted a negative interest rate policy. After lowering one of its key interest rates into negative territory in June 2014, the ECB then lowered the deposit facility rate (DFR) incrementally until it reached the current rate of -0.5% in September 2019.
A German financial product comparison portal, Biallo, conducted a study on 1,300 banks and savings banks in Germany. It found that “More than 300 financial institutions charge some of their customers negative interest,” the portal reported last week. Out of these banks, almost 200 of