By Hans Bentzien
FRANKFURT (Dow Jones) – Germany's private banks have called on the European Central Bank (ECB) to mitigate the impact of the negative deposit rate on banks much more significantly than before. "We demand that the ECB reduce the special charges of the banks as completely as possible by the negative interest", said the president of the federation of German banks (BdB), Frank-Walter Peters, in Frankfurt.
In his opinion, a higher multiplier of the minimum reserve, which currently stands at six times, offers itself as a set screw. "The Swiss National Bank, which works with 25 times the minimum reserve, could serve as a model," said Peters. If the ECB really wants to curb the adverse effects of negative interest rates on banks, then it must act more decisively.
Peter called for the new ECB president Christine Lagarde but also to address the issue of negative interest rates in principle. "Dear Mrs. Lagarde, now you have the big chance for one monetary policythat makes Europe strong, "said the BdB President, saying that the European economy is no longer in crisis mode and needs a constructive monetary policy.
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DJG / hab / jhe
(END) Dow Jones Newswires
November 11, 2019 06:45 ET (11:45 GMT)