Are negative interest rates on the way?

Interesting piece about the likelihood that negative interest rates will be applied to large retail deposits in the near future -

It looks like it which might just get lower and lower each year

Savings are expensive business when you can't lend money out the door to pay for them. Looks right now as if Irish banks are depositing all the covid-19 related deposits with the ECB (at negative rates). Why wouldn't they look too recoup that. Especially with they've to pay their own operating costs on top of that.

The future of Ulster Bank raises the question will they appear sooner rather than later. Banks and vulture funds will be falling over each other to get the loan book but the deposits will likely stay in the banking sector. Worst situation for the remaining banks are liabilities go up (as deposits flood in) but they are out bid for the loan book. Means more money for banks to get charged for at the ECB (or invested in negative yielding government bonds).

Some UK banks are charging this for Euro accounts

I don’t think governments can oversee that because then people will start keeping money under mattresses

don’t think governments can oversee that because then people will start keeping money under mattresses

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This is why they are trying to phase out cash entirely and doing a good job of it