Deutsche Bank chief crit­i­cises ECB charge on lenders

The Pak Banker - - FRONT PAGE -

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.

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