Tag: Negative Rates

How Banks Can Use Rates To Their Advantage (And The Prospect Of Negative Rates)

Handling the current rate environment

It is normal for stock markets to fluctuate, interest rates to vacillate, oil priced to decline and China’s economic growth forecasts to be adjusted (those numbers are mostly made up anyway).  However, the recent behavior in the above mentioned markets is much more volatile than anything experienced over the last few years, and this turmoil is going to change lending and borrowing behavior.  Loan terms, floors, rate resets and debt levels have already been chanced.

Being Thankful - What Negative Savings Rates Would Look Like At Your Bank

The Thanklessness of Negative Rates

We have laughed about it for years at banking conferences, but rates at one bank, have in fact, gone negative. While earning interest on deposits has been a long held precept in banking, the Alternative Bank Schweiz (ABS), a community bank in Switzerland, is the first bank in history that has moved an entire product line to negative rates. As of this week, retail customers get charged 12.5 basis points for short-term deposits and 75 basis points on deposits above 100k Swiss Francs ($98,202).


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