Loading ...NIRP Blowback: Commerzbank Plans To Hoard Billions In Euros In Vaults, Avoid ECB
As The ECB threatens deeper and deeper NIRP, because that’s what the ‘economy’ needs, it seems unintended (though entirely foreseeable) consequences abound. Just three months after Munich Re – the world second-largest reinsurer – started buying gold and hoarding cash to counter negative rates, in order to avoid The ECB’s increasing ‘fees’ for depositing cash with the central banks, Reuters reports that Commerzbank – one of Germany’s largest lenders – is mulling the possibility of hoarding billions of euros in vaults.
Although no decision has yet been taken, the lender has held discussions on the matter with German authorities, said two officials, who asked not to be named because of the sensitivity of the matter. As Reuters reports, a spokesman for Commerzbank said it was not storing cash “at the moment” and declined to comment on whether it might do so in the future, and The ECB declined to comment…