No Negative Rates, Deutsche Bank Promises Depositors

Mohammad Ali (@ChaudhryMAli88) Published August 17, 2016 | 04:28 PM

FRANKFURT, (UrduPoint / Pakistan Point News - 17th Augst,2016) : Customers at Deutsche Bank, Germany's largest, will not be charged negative interest rates on their savings, a senior executive said on Wednesday. "That won't happen with us," private banking chief Christian Sewing told Bild daily. Banks across Europe are feeling the pinch of a -0.4 percent rate on their deposits with the European Central Bank (ECB). The ECB policy aims to push banks to lend money for investment rather than keeping it in reserve, which would provide a shot in the arm to eurozone economic growth.

Few banks have so far passed negative rates on to private customers. Regional Bavarian cooperative Raiffeisen Gmund made headlines earlier in August with plans to charge private depositors negative rates on balances over 100,000 Euros (about $113,000). Some of Germany's Sparkasse regional savings banks also said they would introduce negative rates on large deposits from business clients, sparing private customers for the moment.