FRANKFURT, Sept 19 Germany's state-owned savings
banks and landesbanks expect overall costs of at least 500
million euros ($559 million) per year due to negative European
Central Bank interest rates, three people familiar with the
situation told Reuters.
The public sector lenders, who do not pass on negative
interest rates to the majority of their clients, made their
calculation based only on certain types of deposits and volumes
larger than 10,000 euros, one of the sources said.
This would imply overall costs of well over 500 million
euros to public sector lenders as a whole.
"We're talking about a rough analysis, not something
authoritative," a spokesman for the DSGV association of savings
The ECB began charging banks to deposit excess funds with it
in 2014 as part of its effort to spur higher bank lending and
economic growth but demand for credit in Germany has remained
subdued. The deposit rate is currently -0.4 percent.
($1 = 0.8945 euros)
(Reporting by Andreas Kroener, writing by Jonathan Gould)