Since 2014, the ECB lowered the deposit rate below zero, requiring banks instead of earning interest income to pay extra for the storage of reserves.
The largest banks in Germany rushed to the physical cache, filling banknotes to failure, storing which becomes more profitable than keeping non-cash funds in accounts with the Central Bank.
By the end of 2019, they had tripled and reached a historic record of 43.4 billion euros, Bloomberg reports, citing ECB statistics.
This is 442 tons in banknotes of 100 euros, 800 tons - in 50-euro banknotes of 1.7 thousand tons, if you use the face value of 20 euros.
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Negative deposit rates this year will cost German banks $ 2 billion euros, which does not add to the positive banking system and puts pressure on the single European currency.
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The largest banks in Germany rushed to the physical cache, filling banknotes to failure, storing which becomes more profitable than keeping non-cash funds in accounts with the Central Bank.
By the end of 2019, they had tripled and reached a historic record of 43.4 billion euros, Bloomberg reports, citing ECB statistics.
This is 442 tons in banknotes of 100 euros, 800 tons - in 50-euro banknotes of 1.7 thousand tons, if you use the face value of 20 euros.
=======
Negative deposit rates this year will cost German banks $ 2 billion euros, which does not add to the positive banking system and puts pressure on the single European currency.
=======
Find out more: https://www.facebook.com/pg/FIBOGroup.Global/posts/?ref=page_internal
#fibogroup #forex #forexbroker #forexnews #forexanalysis #economics #economiccalendar #financing #trader #dollar #news #recentnews #forexforecast