Danish lenders have gone too far in their efforts to pass on the costs of negative interest rates to customers, Denmark's business minister said on Tuesday, drawing incredulity from the banking industry.
The Single Market is the key to a resilient industrial policy
DISCLAIMER: All opinions in this column reflect the views of the author(s), not of EURACTIV Media network. 29-04-2021
The COVID-19 crisis has weakened the EU’s industries. The key to getting back on track and increasing long-term competitiveness is to maintain and develop the Single Market through open and fair competition, writes Simon Kollerup.
Banks Under Fire in Denmark as Subzero Rates Hit Retail Deposits
Apr 28 2021, 12:42 PM
April 27 2021, 5:28 PM
April 28 2021, 12:42 PM
(Bloomberg) Denmarkâs government has summoned representatives from the financial industry to talks as banks in the country impose negative interest rates on an increasingly large chunk of retail deposits.
(Bloomberg) Denmarkâs government has summoned representatives from the financial industry to talks as banks in the country impose negative interest rates on an increasingly large chunk of retail deposits.
The announcement comes just one day after Danske Bank A/S, Denmarkâs largest lender, said it will be applying negative rates to deposits as low as 100,000 kroner ($16,000), more than halving an existing threshold.
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COPENHAGEN, April 27 (Reuters) - Danish lenders have gone too far in their efforts to pass on the costs of negative interest rates to customers, Denmark’s business minister said on Tuesday, drawing incredulity from the banking industry.
In 2012 Denmark became the first country in the world to impose negative rates, a trend since adopted by some other countries as developed economies faced both weak inflation rates and changing savings patterns by consumers and businesses.
The Danish central bank’s introduction of negative rates - forcing lenders to deposit funds at the central bank at negative rates - prompted most Danish banks to start introducing negative interest rates on private clients’ deposits in 2019.
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Big out of town DIY stores like this branch of Bauhaus in Aarhus will be allowed to return almost to normal. Photo: Mikkel Berg Pedersen/Freelance/Ritzau Scanpix
Ritzau/The Local
16:42 CEST
Denmark is to next week relax some of its coronavirus restrictions for shops and shopping centres, with large department and DIY stores no longer required to meet customers by appointment or impose a queuing system.
In a press release issued on Friday evening, the Ministry of Trade and Industry said that it was changing the area requirements so that large stores of over 10,000 square metres, which currently can serve a maximum of 250 customers at a time, will be able to serve as many as they like, so long as each customer has 10 square metres of space.