Julius Baer splits neg­a­tive rates be­tween bank, clients: NZZ

The Pak Banker - - COMPANIES/BOSS -

Swiss pri­vate bank Julius Baer has taken a "com­mer­cial ap­proach" to neg­a­tive in­ter­est rates, Chief Ex­ec­u­tive Boris Col­lardi told a Swiss news­pa­per, split­ting costs be­tween the bank, its cus­tomers and the em­ploy­ees who ad­vise them.

"One part of neg­a­tive in­ter­est is car­ried by the bank, one part by the client and one part by the client ad­viser," Col­lardi said in an in­ter­view with the Neue Zuercher Zeitung pub­lished on Wed­nes­day. Ad­vis­ers were able to off­set their por­tion of neg­a­tive rates through ser­vices, prod­ucts and trans­ac­tions within the same client re­la­tion­ship, Col­lardi said. The bank's fi­nance chief, Di­eter Enkel­mann, said in Fe­bru­ary the bank may start pass­ing on neg­a­tive in­ter­est rates for euro de­posits to cus­tomers.

The bank had al­ready been charg­ing in­sti­tu­tional clients for Swiss franc de­posits at the time but, like al­most all other Swiss banks, did not im­pose charges on pri­vate cus­tomers un­less they held es­pe­cially large cash po­si­tions.

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