October 3, 2019 / 8:45 AM / 20 days ago

Danish bank Spar Nord announces minus 0.75% interest on deposits

COPENHAGEN, Oct 3 (Reuters) - Danish lender Spar Nord on Thursday announced a minus 0.75% interest rate on deposits by corporate and private clients, mirroring similar moves by peers Sydbank and Jyske Bank.

“It is now clear, that negative rates are not a passing phenomenon,” CEO Lars Moller said in a statement.

“We believe it is both natural and in line with the monetary policy intentions of the ECB and Denmark’s Central Bank that negative rates to a larger degree also materialise on the deposit side,” Moller said.

Last month, Denmark’s central bank cut its key deposit rate to minus 0.75%, a record low among developed economies.

Earlier the same day, the European Central Bank cut interest rates and resumed buying bonds.

Spar Nord’s new rate will apply from Jan. 1 2020 to accounts holding more than $110,000. It currently charges zero interest on accounts for individuals and minus 0.5% on corporate accounts.

Spar Nord is Denmark’s sixth biggest bank.

$1 = 6.8157 Danish crowns Reporting by Nikolaj Skydsgaard; editing by Jason Neely

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