consequences negative rates

In Europe 2nd September 2016

Banks Have Already Paid ECB €2.8 Bn Related To Negative Rates ‘Tax’

Negative interest rates don’t just require an intellectual effort. They also have real consequences. So far the banks have already paid 2.8 billion euros to the European Central Bank (ECB) as a penalty for excess liquidity, BS Markets says.

World economy 8th April 2016

The problematical consequences of negative rates

If the financial system works with positive interest rates, and a more or less steep yield curve, it will never work with negative short-term rates. The yield curve will never exactly reflect the postive rate curve. Why? Amongst other reasons, because the risk is never less than zero.