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

Square_Cash_from_Mobile_small

Square is changing the rules, and they include cash!

Nov 21, 2017
Env_footprint_small

Energy-guzzling Bitcoin not so environmental-friendly

Nov 09, 2017