OTS: Börsen-Zeitung / With a signal effect, commentary on the abolition of …

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.

Press contact:

Stock exchanges newspaper

editorial staff

Telephone: 069–2732-0

www.boersen-zeitung.de

Further material: http://presseportal.de/pm/30377/5218776

OTS: Börsen-Zeitung

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