Bank interest of 0% a ‘danger’ – Client association

Page created: Monday, 23 March 2015 14:35 GMT

Bank  ECB

The president of a Portuguese bank users’ association (Apusbanc) said on Monday that the fact banks are paying 0% interest on account holder could lead to capital moving to parallel markets.

Portuguese daily paper Jornal de Notícias published an article on Monday saying deposits are becoming less and less attractive for clients as the bank are paying less and less to borrow from the European Central Bank (ECB).

The paper said that three banks: Banif, BPI and Novo Banco are already remunerating deposits at 0% and that in the March price lists, various other banking institutions lowered the interest they pay depositors.