Tag: european banks

ECB’s Negative Deposit Rates – Busting the misinformation

ECB’s Negative Deposit Rates – Busting the misinformation

Financial Markets Explained
After yesterday's ECB decision to venture into negative deposit rate territory; which now the mainstream media terms it as 'Historic' there have been many articles cropping up about how the ECB's negative deposit rate will affect the retail consumers. Part of this hype can be related to misinformed writers who have no clue on how the money system works in today's economy (which hasn't really changed since the past few decades). This article's aim is to provide a fact based analysis of the effects of negative deposit rates and thus concludes that for the average retail customer who banks with the high street banks, there is nothing to worry about, let alone panic. Negative Deposit Rates - For What and for Who? Large commercial banks and financial institutions such as HSBC, Deutsche Bank a...