trending Market Intelligence /marketintelligence/en/news-insights/trending/4phZGzrZjLB1ksDIlIez-A2 content esgSubNav
In This List

BaFin president against banning banks from imposing charges on retail deposits

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


BaFin president against banning banks from imposing charges on retail deposits

Felix Hufeld, president of German financial regulator BaFin, said he would not recommend lawmakers to impose a ban on banks on charging retail customers negative interest rates on deposits, echoing the stance of the country's central bank, Reuters reported.

Hufeld's comment comes as eurozone banks try to grapple with a low-interest-rate environment, which could further escalate if the ECB decides to pull rates down to negative territory at its next meeting, according to the Sept. 5 report.

Minutes from the ECB's July meeting showed that policymakers were in favor of a package of stimulus measures to increase inflation, supporting market expectations of easing steps at the central bank's next meeting in September.

A parliamentary inquiry on the matter is ongoing, assessing if such a ban is legal. Finance Minister Olaf Scholz has warned banks against passing costs to customers.

The Deutsche Bundesbank's Danish counterpart has also said it would not shield commercial banks from negative interest rates.