ECB’s lower interest rate on deposits may not be that bad for Cyprus banks

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ECB’s lower interest rate on deposits may not...
 © In-Cyprus 2019
The European Central Bank’s recent decision to decrease the interest rate on the deposit facility by 10 basis points to -0.50% may not be as bad for banks with excess liquidity such as those in Cyprus.

Because ECB has decreased the interest rate from -0.4% to -0.5%, but, at the same time it has introduced a new system for reserve remuneration, insiders told Phileleftheros.

The new system provides that part of banks’ holdings of excess liquidity will be exempt from the negative deposit facility rate.

Each bank’s exempted liquidity from the negative interest rate...


This article was automatically added to our system 24-9-2019

ECB’s lower interest rate on deposits may not be that  bad for Cyprus banks


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Article Tags: lower, interest, deposits, cyprus, banks,