COPENHAGEN: It turns out negative rates aren’t all bad if you’re a bank.
When interest rates drop below zero, retail deposits start to cost money. But there’s an upside. Borrowers are less likely to default on their loans, which become cheaper as rates decline. For Danske Bank A/S, which recently surpassed Deutsche Bank AG in market value, that development is supporting its profits.
Already a subscriber? Log in.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
