The floodgates for negative interest rates have opened in Germany’s banking world.
More and more large corporate customers are facing charges for depositing their money with a bank. It is a consequence of actions by the European Central Bank, which is desperate for customers to get out and spend their money to give the 18-nation euro-zone economy a boost.
Commerzbank, Germany’s second-largest bank, admitted on Wednesday evening that it will start charging money for large corporate deposits, becoming the largest German bank to publicly acknowledge its actions. The bank in a statement said it “reserves the right” to hold talks with large companies and institutional investors about charging them for their cash. The negotiations will take place on a case-by-case basis with customers who hold “large and surplus liquidity” with the bank.
German companies are not happy – but they blame the ECB rather than the banks.