Large banking institutions face the risk of failure if interest rates in Europe continue to stay negative, warns the global chief economist of the Economist Intelligence Unit.
"I think there are big questions to banking sector profitability," global chief economist of the Economist Intelligence Unit, Simon Baptist, said Friday.European banks have struggled for years in a persistently low interest rate environment. Rates in the Euro zone first hit zero in 2012 and turned negative in 2014. Low interest rates hurt lenders' profits as they narrow the margin that banks can earn.
The ECB last week lowered the interest rate that lenders receive for depositing money with the central bank, pushing it further below zero. That essentially means the central bank raised the amount it charges lenders for the excess cash they hold on to overnight.which exempts a portion of the bank deposits from those charges.said that under this arrangement, "part of banks' holdings of excess liquidity will be exempt from the negative deposit facility rate.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
New Europe Sells Toronto and San Sebastian Film ‘Disco’ to Several Territories (EXCLUSIVE)Jan Naszewski’s New Europe Film Sales has signed several distribution deals on “Disco,” which had its world premiere in Toronto Film Festival’s Discovery section and makes its Eur…
Consulte Mais informação »
Europe is being urged to spend, but some nations are showing little appetite for changeEU nations are at odds on how to change rules on government spending in the 28-member bloc — an impasse that could potentially halt plans to revive the region's economy.
Consulte Mais informação »
New authentication requirements are taking effect in Europe — but some payments firms have raised concerns about their readinessStrong Customer Authentication increases the level of authentication needed from users to complete electronic payments and access online accounts.
Consulte Mais informação »
German finance minister told banks not to hit savers with negative rates: BildGerman Finance Minister Olaf Scholz said on Monday he had told banks not to pass...
Consulte Mais informação »