> Are you saying that banks in Europe would prefer not to accept any deposits at all? Kinda [0]: > Germany’s biggest lenders, Deutsche Bank AG and Commerzbank

> Are you saying that banks in Europe would prefer not to accept any deposits at all? Kinda [0]: > Germany’s biggest lenders, Deutsche Bank AG and Commerzbank AG , have told new customers since last year to pay a 0.5% annual rate to keep large sums of money with them. The banks say they can no longer absorb the negative interest rates the European Central Bank charges them. The more customer deposits banks have, the more they have to park with the central bank. That is creating an unusual incentive, where banks that usually want deposits as an inexpensive form of financing, are essentially telling customers to go away. Banks are even providing new online tools to help customers take their deposits elsewhere. Banks in Europe resisted passing negative rates on to customers when the ECB first introduced them in 2014, fearing backlash. Some did it only with corporate depositors, who were less likely to complain to local politicians. The banks resorted to other ways to pass on the costs of negative rates, charging higher fees, for instance. In The Netherlands the ABN AMRO uses a different strategy [1] to nudge clients to put deposits above 10k at a different bank. --- [0]: https://www.wsj.com/articles/banks-in-germany-tell-customers-to-take-deposits-elsewhere-11614594601 https://www.wsj.com/articles/banks-in-germany-tell-customers... [1]: https://twitter.com/wmiddelkoop/status/1387480070390943755 https://twitter.com/wmiddelkoop/status/1387480070390943755