This file photo taken on January 21, 2016 shows the headquarters of the European Central Bank (ECB) in Frankfurt am Main, western Germany, on January 21, 2016. / AFP / DANIEL ROLAND
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Rock-bottom interest rates hurt more big European banks in 2016 than in the previous year, but the worst could soon be over with the prospect of rising borrowing costs rippling from the United States to Europe.But the policy has been politically divisive, prompting fierce criticism from famously thrifty Germans as the returns on savings in Europe's biggest economy dwindled to nothing. It also imposed a heavy cost on still-fragile banks, turning deposits into a hot potato that many would rather avoid so as not to pay charges to their central bank for storing them.Low rates cost BNP 1 billion euros (roughly $1 billion at current exchange rates) of lost revenue between 2013 and 2016 .Only one Swiss bank, Alternative Bank Switzerland, has imposed such charges.The ECB imposes a so-called negative rate equivalent to 4 euros annually on each 1,000 euros that lenders deposit with the central bank.
FOLLOW THIS ARTICLE