Julius Baer splits negative rates between bank, clients: NZZ
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.