Banks May Force Clients to Cover Cost of Negative Nordic Rates
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As the Nordic region’s biggest bank reveals it may pass negative central bank rates on to clients, the industry is poised to break a taboo it didn’t dare breach just 2 1/2 years ago.
Back in 2012, when Denmark first cut its benchmark deposit rate below zero, commercial banks balked at the suggestion they could share that cost with retail clients for fear of losing business. Now, with rates even lower and the prospect of further cuts, banks are considering charging the people whose deposits provide their funding.