Depositors Are Next as Nordic Banks Buckle Under Negative Rates
- Nordea’s main investor says retail depositors can’t be spared
- Likelihood of cost being passed on is seen as much higher now
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Ever since negative interest rates became a thing, banks have been too afraid to pass them on to retail depositors. That may be about to change.
In Scandinavia, where sub-zero rates have been the norm longer than most other places, the finance industry has undergone several drastic adjustments to survive the regime. Banks have relied more on asset management and other services that generate fees, and less on the traditional business of lending and holding deposits. But with no end to negative rates in sight, those changes may not be enough.