Negative Rates Risk Weakness for Lenders, Says World Bank’s Oteh

Nations that have adopted a negative interest rate policy to spur economic growth face the possibility of weakening their banks, according to Arunma Oteh, vice president and treasurer of the World Bank.

“We still have a global economy that is very fragile,” Oteh said in an interview in Tokyo Wednesday. “What you find where you have had the expansionary monetary policy that has been useful, what you’ve also found is that it has led to maybe potential weaknesses in banks,” according to Oteh, who said that was her personal view.