Tuesday 17 September 2019

Watchdog won't back ban on bank charges

The German share price index DAX graph is pictured at the stock exchange in Frankfurt
The German share price index DAX graph is pictured at the stock exchange in Frankfurt

Tom Sims

GERMANY'S financial markets watchdog would not support a ban on banks charging retail customers for storing their money, its president said yesterday.

Banks in Germany and elsewhere in Europe are under pressure from low or negative interest rates, prompting a debate on whether they could pass on to retail customers the charges they currently face when they deposit cash with the central bank.

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BaFin president Felix Hufeld, asked about banning banks from charging customers for so-called negative interest rates, said he would not advise politicians to go in that direction. Mr Hufeld's comments at an industry conference yesterday highlight worries about the impact of low profitability on banks and the wider financial system. His remarks also follow similar comments from Germany's central bank.

But Bavaria's premier Markus Soeder said banks should not be allowed to charge retail customers interest on savings under €100,000.

Reuters

Irish Independent

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