European Central Bank surprises banks by calling to raise deposit rates

The European Central Bank (ECB) came up with an unprecedented gesture. to force publicly in recent weeks. assets financial – for surprise of these raise interest who pays for deposita message especially for the banking sectors of the countries far behind From this point, like in spanish. Its president, Christine Lagarde, customers request it to their bank during their first interview on Spanish television on ‘Antena 3’ last Thursday.

The scenario chosen is important. Lagarde is thus a interview series in the mass media in different countries of the eurozone Bringing the ECB closer to the public. main target to explain why the institution raise rates fight inflation, as a result and unpopular increase in price credit, especially mortgage. The other side of monetary tightening is, in this case, positive for families, increase in savings wageshowever, it does not occur equally in all countries of the monetary union.

“Bank customers do that talk with bankers and bankers should be sensible if they want to retain their customers. alternative change bank and there are quite a few countries to change banks made easyAs in my country when I was finance minister,” recalls Lagarde. “Take an interest” in the sustainability of your business, but they should also “don’t forget to pay the deposits”. It’s something that already happened “fairly few” European countriesstressed, but not so in Spain.

update fee

Lagarde himself had initiated a similar message In an interview a few days ago indian newspaper. Also vice president, ex-minister Luis de GuindosHe sent similar messages. Last September, at an event in Valladolid, she encouraged customers to take the initiative: “If you’re saving and you have a checking account or time deposit, I’d go to the bank and ask you: hey update fee“. More recently, in an interview on ‘Onda Cero,’ he was convinced that “sooner or later, not beforethis fee will rise”, because the ECB draw liquidity from the market.

Central bank wants institutions to pay more for deposits so help to reach your goal to bend inflationary spiral Increases in rates, therefore, cooling the economy trying to fight inflation, reduce demand On the one hand, two ways of economic agents make the loan more expensive, so companies and households find borrowing more difficult and burdensome. On the other hand, increasing the value of savings, to encourage such savings and prevent money from being used to spend or invest.

more profitability

Despite this, the ECB’s messages some surprise and discomfort In Spanish banking, as it is remembered, control area the central bank itself (independent of monetary policy) urges to organizations gain profitability to ensure its solvency and sustainability. Of course, the head of this chapter, Andrea Enriaa month ago, the industry was “a crisis in the context of rising interest rates and accelerating digital transformation. increased competition in the market deposit can aggravate to a greater extent financing issues“.

In any case, in own industry has some controversy On the advisability of increasing or not making the payment of deposits. Most connected domains reputation is positive but business-related defend the margins to increase profits. The main scenario today is to increase interest rates. start summerCoinciding with the ECB’s withdrawal of liquidity, a year after the industry expected last June.

Source: Informacion


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