Monday, November 7, 2016

Bank customers with fee increases, threaten, and on a broad Front

The Bank Association BdB expects due to the continued prevailing low interest rates with increases in charges for customers on a broad Front. Mini interest rates, and increasing requirements to the own capital buffer to put Europe’s banks under pressure.

“Bank services are not free. There will be a movement towards a stronger pricing,” said the chief Executive of the Federal Association of German banks (BdB), Michael Kemmer, in Frankfurt.

“There is no upper limit for the fees, ultimately governed by the market,” said Kemmer. “We have in Germany an extremely tough competition, which will ensure that the fees grow in the sky.”

Association does not expect penalty interest

That private customers have to pay penal interest rates on their deposits – as first institutions already in hand – will not prevail, according to the Association. “We don’t expect it to be, also due to the fierce competition,” said Kemmer.

The European Central Bank (ECB) collected from banks, is currently 0.4 per cent penalty interest, if you are Parking money overnight at the Central Bank. The cost of the credit institutions in the Euro area at present, according to BdB calculations almost 350 million euros in penalties in the month.

it was dramatic, because regulators always demand thicker capital buffers of the banks. BdB President Hans-Walter Peters warned of a disadvantage to European banks by new capital rules by the Basel Committee. The world’s most important Bank supervisors to agree to the end of the year on new requirements for risk calculation in banks.

Regardless of the outcome of these negotiations, attributed to Peters with significant cuts in the German banking landscape: “When we spin the collapse of revenues that we see currently, continue to, then this is sure to be a hard time and a large consolidation pressure,” said the spokesman for the personally liable partners of Berenberg. “We will be sure to go with a significantly less banks in the future.”


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