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Started By
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Japan adopts negative interest rates
Posted on 1/28/16 at 10:23 pm
Posted on 1/28/16 at 10:23 pm
Japan adopts negative interest rates
Let the games begin...
quote:
Japanese savers faced the shock of negative interest rates on their bank balances on Friday, as the Bank of Japan’s monetary policy committee announced the unprecedented measure following a two-day meeting.
Five of the nine members of the BOJ Policy Board were in favor of the move, which could impose a 0.1% fee on bank savings. The yen weakened sharply on the news, as currency traders sold up.
The Nikkei stock average gained a swift 1.1 percent as trading resumed after Friday’s lunch break.
Negative interest rates mean savers will lost a percentage of their deposits.
Let the games begin...
4
Posted on 1/28/16 at 10:49 pm to TigerDeBaiter
time to bury the yen in the ground
Posted on 1/28/16 at 10:50 pm to HailToTheChiz
quote:
time to bury the yen in the ground
That's not exact victory, given trade considerations
Posted on 1/29/16 at 7:57 am to TigerDeBaiter
I have a rough understanding of macro economics, but how does this NOT lead to a run on the banks?
Posted on 1/29/16 at 8:12 am to TigerFanatic99
Sweden's central bank did this last year about this time. The goal is to encourage banks to lend more and deposit less of their "excess" reserves with the central bank.
The article is a bit misleading in that the negative rates imposed by the central bank is not on the banks' depositors but on the banks' deposits with the central bank.
Whether the banks impose a negative interest rate on their customers accounts is up to each bank and if they do it, it becomes basically a fee on the account to hold the deposit.
The article is a bit misleading in that the negative rates imposed by the central bank is not on the banks' depositors but on the banks' deposits with the central bank.
Whether the banks impose a negative interest rate on their customers accounts is up to each bank and if they do it, it becomes basically a fee on the account to hold the deposit.
Posted on 1/29/16 at 8:38 am to TigerDeBaiter
US Dollar about to go thru the roof.
Posted on 1/29/16 at 8:43 am to LSU1NSEC
A new Lexus just got a little cheaper....
Posted on 1/29/16 at 9:13 am to LSURussian
quote:
Whether the banks impose a negative interest rate on their customers accounts is up to each bank and if they do it, it becomes basically a fee on the account to hold the deposit.
Which would seem to me, to spark a bank run. Especially if some banks are doing this and some aren't.
Of course, the negative interest is so small, it might not matter to the average depositor, and I guess a large depositor will be given a free pass.
Posted on 1/29/16 at 9:16 am to LSUFanHouston
quote:Banks in the U.S.A. have account fees on many of their deposit accounts and it doesn't create bank runs.
Which would seem to me, to spark a bank run. Especially if some banks are doing this and some aren't.
Posted on 1/29/16 at 9:47 am to TigerDeBaiter
yep first thing id do is take all of my money out of the bank
Posted on 1/29/16 at 10:32 am to LSURussian
quote:
Banks in the U.S.A. have account fees on many of their deposit accounts and it doesn't create bank runs.
Well, there are also many accounts without fees. I haven't paid a single bank fee on a personal account since the late 90s.
Whereas, a negative interest rate would hit everyone, unless the bank waived it.
Posted on 1/29/16 at 10:47 am to LSUFanHouston
quote:
Whereas, a negative interest rate would hit everyone, unless the bank waived it.
It's already been stated that it doesn't apply to individual depositors; it applies to deposits by the BANKS into the CENTRAL BANK.
Posted on 1/29/16 at 10:55 am to Cooter Davenport
quote:
It's already been stated that it doesn't apply to individual depositors; it applies to deposits by the BANKS into the CENTRAL BANK.
That clarifies a lot. Then again, I don't like the idea of the government putting in policies that so strongly encourage banks to start lending more money to people who are not necessarily credit worthy.
Well, there's a 50% chance this deadbeat isn't going to pay this back, but there's a 100% change that the fricking government is now going to take it if we don't give it to the deadbeat.
Posted on 1/29/16 at 10:59 am to LSURussian
quote:
The article is a bit misleading in that the negative rates imposed by the central bank is not on the banks' depositors but on the banks' deposits with the central bank.
Whether the banks impose a negative interest rate on their customers accounts is up to each bank and if they do it, it becomes basically a fee on the accou
Yeah, that is a little misleading, but depending on if fees are raised, then it may not be too far from reality. Either way it's a desperate move. One has to wonder if our fed will back off now.
Posted on 1/29/16 at 3:03 pm to Cooter Davenport
quote:
It's already been stated that it doesn't apply to individual depositors; it applies to deposits by the BANKS into the CENTRAL BANK.
That's what the government requires, yes.
Some banks may choose to pass it on to the customers, though.
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