Skip To The Main Content

News

Search anytime by typing

German banks considering hoarding cash to avoid negative interest rates

by Guillaume Lepecq | Jun 10, 2016
bankAccording to Reuters, Commerzbank, one of Germany's largest banks, which is partly-state-owned, is considering storing banknotes in their vaults instead of paying negative interest rates if they deposit it with the ECB.

A separate article in der Spiegel online, claims that the Bavarian Savings Banks are also examining a similar move. According to the calculations of the savings banks, insuring the money would be cheaper than depositing it with the ECB. However, storage, security and transportation costs also need to be accounted for.

Deposits by European banks at the ECB currently represent over € 850 billion.

Leave a comment

More news

Casino_Roulette

Macao fights fraud with facial recognition at ATMs

May 19, 2017
Indian_Farming

Indian microfinance firm impacted by demonetisation

May 18, 2017