With a signal effect, commentary on the abolition of penalty interest by the
ING by Tobias Fischer
Frankfurt (ots) – ING is going ahead and virtually eliminating the custody fee,
although a turnaround in interest rates in Europe is only anticipated. In July the
The European Central Bank will raise interest rates in the face of high inflation
speculated. But that is not certain, and even if it is, it is unclear how strong it is
the interest rate step is canceled and whether others will follow. It is all the more remarkable
early determination of the ING. It should have a signal effect.
It is true that the Oldenburgische Landesbank was already a pioneer around three
Weeks the exemption limits for deposits from private customers, from which 0.50 percent
Penalty interest is due raised. But as a regional bank, it lacks that
Weight, which is one of the largest German banks with more than 9 million customers
raises. After curbing deposit inflows, ING now expects again
increased inflows. What banks have tried all over the country, the customers
prevent them from investing their money in shady accounts is wrong
in perspective the opposite.
On the one hand, savings banks and banks rightly complained that they
Excess deposits that they do not qualify as loans are sufficient or reasonable
invested, are forced to park at the central bank at negative interest rates.
On the other hand, they are also granted allowances and thanks to the
Refinancing operations TLTRO III of the ECB partly considerable interest income
been bestowed. Such (partial) compensation or not, the resentment about the
Penalty interest, custody fees, negative interest or whatever that of banks
interest rate of the ECB deposit facility passed on to its customers of minus
0.50 percent is mentioned, is made abundantly clear at almost every press conference. the
“Loving hugs from customers” are increasingly taking away from institutes
economically the air to breathe, commented about
Sparkasse president Helmut Schleweis once.
Even if in the face of a slow turnaround in interest rates with the unwelcome inflow of money
may be over in the foreseeable future, the institutes are completely off the hook
then not yet. Because the loan interest usually has a fixed interest rate of
up to 15 years, and at low rates, at the same time
but the pressure is high to raise deposit rates quickly, the
Interest margin initially narrow further instead of widening. It changes
of course over time, when fixed interest rates and contracts expire – then closed
higher interest – to be adjusted. But it will be years before then. Before it
gets better, it may at least get worse for some institutes.
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