Cyprus banks challenged with ECB’s negative rates on deposits call

13-9-2019 In-Cyprus In-Cyprus Cool

Cyprus banks challenged with ECB’s negative...

Cyprus’ banks are now confronted with new challenges following yesterday’s decision by the European Central Bank to decrease the interest rate on the deposit facility by 10 basis points to -0.50%.

The ECB has pushed interest rates further into negative territory in order to support the region’s flagging economy. Negative rates penalise banks for holding cash rather than lending it out.

And what this means for Cyprus is that its banking system has to prudently manage a very high liquidity which is up to €14 billion.

But the island’s two big financial...

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This article was automatically added to our system 13-9-2019

Cyprus banks challenged with ECB’s negative rates on deposits call

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