Negative bank deposit rates
"Negative interest rates are the official policy of the European Central Bank with a deposit rate of -0.40%, Switzerland with -0.75%, Sweden with -0.35% and Bank of Japan with -0.10%," Ma said. That said, there is a wider market effect of negative policy rates that could benefit banks. Negative policy rates (deposit and funding) depress the short end of the money market yield curve. All short-term rates respond to this, so we would expect most demand deposits to carry a negative rate, along with short-term risk-free securities. Customer deposits are typically remunerated at above-zero rates. In this case, negative policy rates may then lead to lower net interest margins for these banks. Conclusion. Banks with different business models differ in their risk response to low interest rates.