The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Banks pass the pain of negative rates to their depositors

Any market sell-off in advance of coming recession will raise the cost for banks of holding their customers’ cash and make them look again at open banking.

Jyske Bank announced on August 20 that it will begin charging affluent retail customers up to 60 basis points on deposits above DKK7.5 million ($1.12 million).


Anders Dam,
Jyske Bank

More attention than usual has suddenly focused on the third largest bank in Denmark, because chief executive Anders Dam, in an interview broadcast on the bank’s investor relations site, refused to rule out extending negative deposit rates to regular retail customers.

“We hope it won’t be necessary, but we can’t promise it won’t be,” he said.

Negative rates are hardly new. The Danmarks Nationalbank was one of the first central banks to implement them in July 2012 amid fears that the spillover from the eurozone crisis could drive up the Danish krone.

Jyske began passing on negative rates to corporate depositors three years ago.

However, what once seemed like a temporary phase of unconventional monetary policy now starts to look permanent. Extraordinary accommodation has prompted no self-sustaining recovery, not even in the US where the Fed is now cutting rates once more, much less the eurozone.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree