Post
Topic
Board Economics
Re: Negative interest rates in Germany
by
alyssa85
on 24/11/2019, 11:08:17 UTC
The same as Japan.
I cam up with a question.
How the bank will survive if less people put the money in the bank?

It can't survive.

That's why Moody's has downgraded German banks 3 days ago:

https://www.cnbc.com/2019/11/21/moodys-downgrades-outlook-for-german-banking-system-to-negative.html

Quote
Moody’s has downgraded its outlook for German banks to “negative” from “stable” as profitability and overall creditworthiness weaken in a low interest rate environment.

In a report published Thursday, the ratings giant said the already weak profitability of German banks will decline further over the next 12 to 18 months as net interest income falls.

There are going to be some spectacular bank failures in the next five years.