Commerzbank Joins Deutsche Bank in Flagging Higher German Fees
- Deutsche Bank says deposit costs have unintended consequences
- Negative rates cut Commerzbank loan income by $180 million
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Commerzbank AG, the biggest lender to German companies, joined Deutsche Bank AG in signaling that the country’s banking clients will face higher fees to help shoulder the cost of record-low interest rates.
“The German market will see these repricing initiatives,” Chief Financial Officer Stephan Engels told analysts on a conference call on Tuesday after Commerzbank released second-quarter earnings. German banks’ deposit funding “is obviously a very difficult business model” when interest rates are negative, he said.