Banks: will soon do we pay to save? – The Obs

A taboo size fell to Gmund, Bavarian town of 6,076 inhabitants. The boss of the small German cooperative bank Raiffeisenbank warned customers it two months ago that his institution would take, in September, 0.4% of the amounts deposited in the accounts beyond 100,000 euros, revealed the Reuters. He hopes to encourage them to subscribe to financial products that the bank offers. And this is a first in Europe.

Brave, feel his confreres. Banks see their margins eroded in particular because of the policy of the European Central Bank (ECB). To revive the economy, the institution of Frankfort trying for several years to increase the liquidity of the banking sector, lower the price of money. In particular, it lowered the rate at which it pays banks for deposits. So much that it is now negative: banks must pay the ECB in order to place their surplus money. So after all, why should not the same would they do with their clients?

Because they already do

This is a first, is to take a percentage of the deposit of an individual. But European banks have already begun to explore other ways to improve their margins.

• Some affect the levy on the accounts of large companies, in which they provide other services. The group People’s Bank Savings banks said it would do when “the size of the cash is significant”, and Royal Bank of Scotland has warned it could target independent retailers and associations if the central bank of the United Kingdom it also applied negative rates, reports “Les Echos”

• European banks also ask their customers to pay fees of any kind. consulting the account via internet , denial of transfer, bank cards, payments, withdrawals … “in France, there has been tariff appetites said on France inter Serge Maître, general secretary of the French Association of users of banks. the last is to charge holding account. ” While this is a standard deduction, which does not increase with the amount credited to the account, these commissions are admittedly capped by law for a few years, but it is still a non-negligible income.

Because they are afraid of “Bank Run”

If it is hailed by some bankers, the new collection also concerned specialists. It could discourage investors to resort to banks. Unlike large companies, linked to an establishment for many other operations, or banks, that can turn into their central bank, individuals can easily withdraw their money and build a nest egg, stashed under their mattresses. Converted into bills, their economies are more vulnerable to burglary, but significantly less on bank withdrawals.

Is this a reason why banks are calling for the disappearance of species? No ticket, no escape. Digitalization of money – and check – that seems to go in the direction of history, is encouraged by the authorities because of its cost management now seems high. He is especially for banks.

The removal of cash could also avoid the risk of “Bank Run”, a massive withdrawal by investors. It would destabilize the entire banking system. “If 20 million people do, the system collapses,” hammered in 2010 the actor and former football player Eric Cantona, who called for a revolution without violence in the aftermath of the financial crisis. The stability of the banks are in fact based in particular on retail deposits.

Because they are already doing it twice

Indirectly, your savings really generate much more revenue for banks.

“household deposits provide liquidity to banks, says Gaël Giraud, Chief economist at the French development Agency and supporter of the separation of market activities and credit-deposit. also, since these deposits are guaranteed by the State to the tune of 100,000 euros, mixed banks, which combine speculation in financial markets and credit-deposit operations, benefit from the implicit state guarantee, which lowers their cost of funding markets and above implies that in case of disaster, it is the taxpayer who pays, as was already the case for Dexia. by taxing deposit accounts, banks will therefore pay three times on our savings . “

is not that enough?

Because they are not necessarily viable

It seems that European banks are in need of this new collection opened in Bavaria. Since the 2008 crisis, some rely on their balance sheet financial products that are worth more much, they are trying to separate gradually, but that plague their profits. In addition, they must adapt to the new regulations, consuming capital.

In addition, the old continent flirting with stagnation. As growth prospects are weak, individuals and businesses borrow little, which also reduced bank profits. Some Italian or German banks also threatened in recent weeks to plunge Europe into financial panic.

“According to the IMF, 40% of banks in the euro area are not viable. Take savers only pushes their bankruptcies, “said Gaël Giraud.

and in case of bankruptcy, who will pay?

6 questions on negative interest rates

D. H.