If banks deposit their money at the ECB, they have to pay penalty interest – on the other hand, some financial institutions now want to fight back and stash their cash easily in own vault
Given the. penalty interest of the European Central Bank (ECB) are considering some financial institutions according to a newspaper report, to park their money somewhere in his own vault. Sparkassen wondered “whether it might be more economical for them, not high cash values - as usual – store at the ECB, but instead to keep themselves”, quoted the “Frankfurter Allgemeine Zeitung” from a circular of the Bavarian Savings Banks Association
This is the talk of a “Governing cash protection”. What is meant is that they want to protect themselves with cash before Governing penalty interest. The Savings Banks Association refers therefore that the Bavarian Insurance Chamber an insurance offer “for larger amounts of cash.” This would cost 1000 euros 1.50 euros plus insurance tax. That makes 0.1785 percent – and thus lies below the ECB’s penalty rate of 0.3 percent. However, it may give additional expenses such as cash in transit or reinforced burglary protection.
Financial Institutions showing interest
According to a spokeswoman for the Association of Savings Banks in Munich have several financial institutions interest in the program shown. Specific sums also paid penalty interest, she did not call.
Already in the next week, the ECB may exacerbate the deposit rate even further. Given the weak inflation keep analysts a further easing of monetary policy with a further reduction of interest rates and possibly an extension of the bond purchase program likely as the “FAZ” reported. Observers suspect that the Governing Council might next Thursday exacerbate the deposit rate to minus 0.4 or even 0.5 percent.
In these European countries, the cash is already limited
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