Deutsche Bank chief criticises ECB charge on lenders
Money printing may have run out of power to help the economy, the head of Deutsche Bank said today, arguing that central bank strategy was backfiring by hurting banks and making lending more expensive.
John Cryan's comments, delivered to an audience that included one of the European Central Bank's most influential policy-setters, highlight the pain being felt by banks from zero interest rates designed to buoy the economy. "I think monetary policy needs to go the other way," Cryan said.
"A more normalised interest rate environment, I think, is a safer place." Cryan, whose group was recently sucked into a bank stocks crash, was particularly critical of central banks' charges for hoarding money with them - known as a negative deposit rate.
The European Central Bank has imposed such a charge and could increase it by making the deposit rate more negative when governors meet next week.
Cryan's appeal, alongside the concerns of other bank chiefs, are likely to be taken into account.