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Danske Bank lowers threshold for negative interest rates on deposits
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BEARCATDALE Offline
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Danske Bank lowers threshold for negative interest rates on deposits
Will America soon follow?

Quote:Danske Bank DANSKE.CO said on Monday it would lower the threshold for applying negative interest rates on retail deposits to 100,000 Danish crowns ($16,260), following an increase in deposits at the bank.

Danish banks have been dealing with negative interest rates for some time. In November last year, Danske lowered its threshold for when it would charge customers from 1.5 million crowns to 250,000 crowns.

"We have experienced highly unusual interest rate levels for a long time now, and there is no prospect of this changing," Danske's head of personal customers, Mark Wraa-Hansen, said in a statement.

"At the same time, we see a significantly increasing deposit surplus, which in the current interest rate environment results in a considerable expense for the bank. This is obviously not sustainable for us in the long term," he said.
05-03-2021 10:40 PM
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Attackcoog Offline
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Post: #2
RE: Danske Bank lowers threshold for negative interest rates on deposits
(05-03-2021 10:40 PM)BEARCATDALE Wrote:  Will America soon follow?

Quote:Danske Bank DANSKE.CO said on Monday it would lower the threshold for applying negative interest rates on retail deposits to 100,000 Danish crowns ($16,260), following an increase in deposits at the bank.

Danish banks have been dealing with negative interest rates for some time. In November last year, Danske lowered its threshold for when it would charge customers from 1.5 million crowns to 250,000 crowns.

"We have experienced highly unusual interest rate levels for a long time now, and there is no prospect of this changing," Danske's head of personal customers, Mark Wraa-Hansen, said in a statement.

"At the same time, we see a significantly increasing deposit surplus, which in the current interest rate environment results in a considerable expense for the bank. This is obviously not sustainable for us in the long term," he said.

Negative interest rates is a concept I have never really understood---but to me---it would seem to be the single best way for a banking system to force liquid wealth away from banks and government sponsored fiat currencies and into crypto-currencies.
(This post was last modified: 05-03-2021 10:49 PM by Attackcoog.)
05-03-2021 10:48 PM
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JRsec Offline
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Post: #3
RE: Danske Bank lowers threshold for negative interest rates on deposits
(05-03-2021 10:48 PM)Attackcoog Wrote:  
(05-03-2021 10:40 PM)BEARCATDALE Wrote:  Will America soon follow?

Quote:Danske Bank DANSKE.CO said on Monday it would lower the threshold for applying negative interest rates on retail deposits to 100,000 Danish crowns ($16,260), following an increase in deposits at the bank.

Danish banks have been dealing with negative interest rates for some time. In November last year, Danske lowered its threshold for when it would charge customers from 1.5 million crowns to 250,000 crowns.

"We have experienced highly unusual interest rate levels for a long time now, and there is no prospect of this changing," Danske's head of personal customers, Mark Wraa-Hansen, said in a statement.

"At the same time, we see a significantly increasing deposit surplus, which in the current interest rate environment results in a considerable expense for the bank. This is obviously not sustainable for us in the long term," he said.

Negative interest rates is a concept I have never really understood---but to me---it would seem to be the single best way for a banking system to force liquid wealth away from banks and government sponsored fiat currencies and into crypto-currencies.
Crypto has no inherent value anymore than government script. Gold, Platinum, Silver, Palladium, and real property are the best storehouses for wealth. If you are going to have to be on the move high grade jewels may suffice. Nations trade in the metals and land is what the corporations have been snapping up with profits and funny money (credit based on derivatives).
05-03-2021 11:26 PM
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banker Offline
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RE: Danske Bank lowers threshold for negative interest rates on deposits
This already happened here in 2009. Chase was, I recall, the first bank to charge commercial customers to house their deposits. I was with Fifth Third at the time and was tasked with telling large non profit customers that we no longer wanted their deposit business (after years of pursuing and winning that business).

The reason is fairly simple. You have to pay FDIC insurance on every dollar you have on deposit. If you don’t have avenues to earn a return on those deposits, it costs you money to have them. What you are doing is passing the insurance costs on to the customer who benefits from the insurance.
05-04-2021 12:09 AM
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