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UniCredit to charge negative interest rates on deposits over €100,000 from 2020

UniCredit SpA will charge clients for holding deposits above €100,000 from 2020, in an effort to mitigate the impact of the European Central Bank's decision to further cut negative interest rates, the Financial Times reported Oct. 9.

The changes in the European banks' operating environment, particularly the rate cut, have spurred the lender to analyze its pricing structure relative to market conditions, according to a statement from the Italian lender.

The negative rates have lowered net interest income, but they have had a positive effect on provisions, UniCredit CEO Jean Pierre Mustier reportedly said in an interview with French news channel BFM.

Banks across Europe are starting to react to the negative interest rates. UBS Group AG has said it may also charge deposit fees on small and medium-sized enterprise clients if the Swiss central bank further lowers its rates.

Meanwhile, the number of banks in Germany passing costs related to negative ECB interest rates onto retail customers has also increased in recent weeks. Denmark's Jyske Bank A/S has also decided to charge clients with large deposits.