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.