NewsWorldBanks stop charging companies for deposits after three years...

Banks stop charging companies for deposits after three years – elEconomista

-

The big banks put an end to the collection of deposits from companies, after three years. With the rise in official interest rates, which the European Central Bank (ECB) began to apply as of July 22, entities have begun to inform customers that they will no longer apply interest on the liquidity deposited in the bank. It should be noted that the bulk of Spanish banks did not charge individuals to guard their deposits, but rather a certain type of client, such as institutional clients and large companies. However, despite the fact that the rise in interest rates took place in the penultimate week of July, entities no longer charged large companies for their deposits in June, according to the latest data published by the Bank of Spain. The weighted average rate applied by banks to companies in June was positive, at 0.328%, while a month earlier it was negative, at -0.093%. The financial sector began charging large clients such as companies, family offices or institutional investors for deposits in January 2019. Then the deposit facility was already negative, at -0.4%, although it has already stepped on this ground five years before, in June 2014, when the ECB placed it at -0.1%. Since then, it has not stopped falling, until reaching the minimum level in September 2019, with -0.5%, the threshold where it has been until the rate hike last July. The European supervisor decided to raise all official rates by 50 basis points, which led the deposit facility to stand at 0, a level not seen since 2013. During these last years of negative deposit facility, the entities of the euro zone have had to pay the ECB for the liquidity parked in the body, until in the case of Spain, in 2019, they began to transfer the cost to certain companies. A situation that has come to an end, according to the financial sources consulted by this newspaper. This step will allow companies to save costs, at a time when high inflation is taking its toll on company expenses. The financial sector predicted the end of the collection of deposits from companies for September, although it has finally been brought forward three months. Initially, the ECB was expected to raise rates in July by 0.25% for a second hike at the end of the summer. However, the body preferred to act more forcefully in the face of high inflation, which last June reached 8.6% in the Eurozone, five tenths more than the previous month, according to the latest data from the Community Statistics Office. Eurostat. The ECB’s objective with this gradual normalization of monetary policy is to bring inflation to the 2% threshold in the medium term. The increase in the deposit facility closes the door for the financial sector to extend the collection of deposits to other clients, such as individuals. Although most entities have always stated that they would not charge retail users for deposits, due to the fear of their leaking, there were banks that had begun to pass on the cost to certain customers. BBVA took a step forward at the beginning of 2021 and began to apply a rate of 0.025% per month or 0.3% per year to a small number of customers (0.2%) with little connection and balances above 100,000 euros . Caja de Ingenieros also began charging 0.3% in the middle of last year to Premium and Personal banking customers from 100,000 euros, a measure that has already been eliminated. ING, for its part, applies a commission of 10 euros per month for custody of balances to those clients without payroll and with more than 30,000 euros in the entity. Brief time of ‘joy’ With this situation clear of the equation, customers could now face new costs for the specific rate that the Government of Pedro Sánchez plans to impose on banks. The Executive proposes a rate of 4.8% on the interest margin and the net commissions of the banks, as long as their income was greater than 800 million euros in 2019, before the impacts of the pandemic. The Government intends to raise 3,000 million euros with this measure. The European Banking Federation (EBF, for its acronym in English), headed by the president of Santander Ana Botín, already indicated earlier this week that this rate will end up being paid by customers because current banking regulations require entities to pass on all costs in prices. However, the Government rule sets a penalty of 150% of the amount passed on to users. Both the EBF and the Spanish employers’ associations (AEB and CECA) consider that the Executive’s tax, far from helping the economy, will have the opposite effect, since it will harm the recovery capacity of the sector and the ability to finance the economy. The CEO of Santander, José Antonio Álvarez, pointed out on July 28 that the tax could reduce the credit by 50,000 million. Remuneration will take time The recent rise in interest rates leaves the remuneration of household deposits the same. With the threshold at zero, the financial sector does not anticipate that the balances will be discounted early and they transfer this scenario between the middle and the end of 2023. According to the sources consulted by this newspaper, for the bank to give remuneration to customers still They have to raise rates a lot, until they are around 1% or 1.5%. At this threshold, they say, then a return on deposits of around 0.5% could be expected. At the moment, none of the large entities plans to discount balances since their strategy does not go through capturing deposits since they have enough liquidity to give credit. comments0WhatsAppFacebookTwitterLinkedin

1 COMMENT

  1. Download Stanislav Savitskiy – Graal Radio Year #3 (DJ Mix) Album Mp3 Zip 2022-01-01
    Download Afrobeat Dancehall, Afrobeats & Norbz – Afrobeats & Raggajungle Album Mp3 Zip 2022-01-01
    Download Yoonchan Kwak – OLIVET Album Mp3 Zip 2022-01-01
    Download Amatyst – Feeling Album Mp3 Zip 2022-01-01
    Download Afrobeat Dancehall, Afrobeats & Norbz – Afrobeats & Raggajungle Album Mp3 Zip 2022-01-01
    Download David Rothenberg & Stephen Nachmanovitch – From This World, Another Album Mp3 Zip 2022-01-01
    Download Lil Playah – Money Hungry! – EP Album Mp3 Zip 2022-01-01
    Download Los K-Bros – Selecto Notorio 3 Album Mp3 Zip 2022-01-01
    Download Thonio – No Rules Album Mp3 Zip 2022-01-01
    Download Cheb Brahim Chelfi – Best of Brahim Chelfi Album Mp3 Zip 2022-01-01
    Download Jonathan Dutcher – Family, Vol. 1 – EP Album Mp3 Zip 2022-01-01
    Download Vestbo Trio – Reflector Album Mp3 Zip 2022-01-01
    Download Caleb Nordhaugen – Songs from the Fire Album Mp3 Zip 2022-01-01
    Download Afrobeat Dancehall, Afrobeats & Norbz – Afrobeats & Raggajungle Album Mp3 Zip 2022-01-01
    Download Bedårande Barn – Demos & Alternativa Mixar Album Mp3 Zip 2022-01-01
    Download DJ Noriken – Zodiax 3+ Album Mp3 Zip 2022-01-01
    Download Eddie Clark – Soul Talk Album Mp3 Zip 2022-01-01
    Download Bear1boss – Sicko Space X – EP Album Mp3 Zip 2022-01-01
    Download Elizy – He Is the vibeast Album Mp3 Zip 2022-01-01
    Download DJ DIEGO MAXIMO – Vol. 01 Album Mp3 Zip 2022-01-01
    Download Ridillo – 30 Anni Suonati Album Mp3 Zip 2022-01-01
    Download Nicolás Pastoriza – Servicio de Atención al Cliente – Temporada 1 (Versión Completa) Album Mp3 Zip 2022-01-01
    Download Septic Karnage – Dehumanization Decay Album Mp3 Zip 2022-01-01
    Download Blanket Swimming – Temple of Heaven Album Mp3 Zip 2022-01-01
    Download Parker – OMBL II (part.1) – EP Album Mp3 Zip 2022-01-01

Comments are closed.

Latest news

End of the heat wave: the arrival of rains and storms puts six autonomous communities on alert – Onda Cero

Six communities are under alert, with Aragon and Catalonia at an orange level due to significant risk, given the...

Femicides, killed 125 women in the last year

Femicides committed in the last year increased by 15.7%, totaling 125 or 39.2% of the total number of voluntary...

Piero Angela, today the last farewell in the Capitol

Last farewell today to Piero Angela, the journalist and science writer who died on Saturday at the age of...

Crimea: fire and explosion of ammunition in a Russian base – Le Figaro

A fire that caused an explosion of ammunition occurred Tuesday morning August 16 at a Russian military base in...

Actress Eva Rysová is 90. She wanted to be an architect – Film and television – PRAVDA.sk

Slovak actress Eva Rysová, who acted in several theater productions, several series and over a hundred films, is celebrating...

Inflation triggers business delinquencies by 42% in the first quarter – Burgos Conecta

LA GómezThe commercial debt with delayed payment reached 73% of the total, reaching almost 350,000 million euros, according to...

You might also likeRELATED
Recommended to you