According 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 From the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More 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.