In spite of two interest cuts made by the Fed this year, those looking to deposit assets into high-interest savings accounts seem to be multiplying. The reason for this frenzy amongst the financial sector is the digitisation of the market.
What set the financial world ablaze this week? Our weekly round-up of financial news highlights… perfect for those watercooler moments. This week retirement has been the zeitgeist for all ages, with shifts happening for those beginning their contributions and those already drawing their retirement funds alike.
Even though analysts predicted a rise in rate of inflation for August, it remained the same as it was in July at just 0.2%. The measure implemented by the European Central Bank did not help reach the target rate of just under 2%. The ECB is now expected to announce new policy measures. These might be unveiled as soon as next week, since the bank’s rate-setting Governing Council is due to meet on 8 September.
German bank Raiffeisenbank Gmund am Tegernsee announced that it will charge a negative interest rate of 0,4% on its private clients deposits above 100.000€. Another German local bank, Skatbank, made a similar move earlier this year.
Although this practice is still unusual for private deposits, it became widespread in Germany on corporate and institutional client’s deposits.
Last 29th of July, the European Banking Authority released the results of the 2016 EU-wide stress tests. The aim of these tests was to assess the resilience of EU banks and increase confidence in the banking system. Even though the EBA abandoned the “Pass/Fail” marks, only one bank was insolvent after the three-year adverse scenario of the test, the Italian bank Monte dei Paschi, which is reassuring for the European banking sector.