Commerzbank introduces negative deposit rates for institutional clients
Following the ECB introduction of negative deposit years in June this year, German Commerzbank AG is the first major lender in the eurozone to pass this policy on to its institutional clients.
Commerzbank the second biggest lender in Germany, follows BNY Mellon, Goldman Sachs, J.P Morgan, Credit Suisse and HSBC, who have already confirmed the introduction of negative deposit rates, the Wall Street Journal reports.
Martin Halusa, head of press for Commerzbank Corporate Banking stressed: “The measure will generally not apply to private- and medium-sized companies. The conditions and interest rates for institutional investors will be specificed on an individual basis.”
“We reserve the right to charge a fee for excess liquidity deposited in our accounts by larger corporate clients and institutional investors. When charging for excess liquidity, we will remain cautious, taking into account the level of liquidity which is necessary to maintain effective business operations,” he adds.