It Begins: Dutch Bank ABN Amro Will Charge Negative Interest On Deposits
Source: ABN AMRO Website
One of the largest Dutch banks, ABN Amro, has now warned its business clients a negative interest rateon the business accounts is in the works. The bank is currently updating its terms and conditions and will more specifically include its right to reduce the interest rates below zero as the bank wants to ‘protect itself’ against the continuously changing market circumstances.
Even though this is a very interesting development, this isn’t really completely unexpected as thecompany’s CEO has released some ‘test balloons’ in the past. But this where it gets really interesting. ABN AMRO still is a government-owned and government-run bank. The bank’s CEO , Gerrit Zalm, wasn’t someone from the financial sector, but used to be the Netherlands longest-serving Minister of Finance being in office for no less than 12 years (or three complete terms).
Not only is it intriguing to see the bank that is being led by a bureaucrat rather than a banker being the first one to formally start talking about charging customers to park their money at the bank, it’s also very interesting to see it’s a government-owned bank taking the first step.