The European Central Bank has indicated that it is looking into how to mitigate the costs that years of negative interest rates have exacted on banks. That has led some in the market to bet that it will introduce tiered interest rates at some point. But analysts are not convinced that tiering deposit rates will help weak lenders — or make any difference at all. Mike Turner reports.
Implementing the plan could also be politically controversial. It has highly placed supporters, including the head of the French central bank. But sceptics believe negative rates are not the main problem for banks, and some think the ECB may be interested in tiering as a smokescreen, to defend
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