
COULD BANKS SURVIVE A PERIOD OF INTEREST RATES BELOW ZERO?
(STEF92 Technology, 2018, Silvia Trifonova)
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Since the introduction of the negative nominal policy interest rates by the European Central Bank (ECB) in June 2014, there have been concerns about their impact on bank sector and hence on the financial stability. The prolonged global economic recovery, political uncertainty, low interest rates, and the changing regulatory landscape shape the environment for banks globally and influence their creditworthiness in recent years, with implications for banksВ’ earnings, profitability, and asset quality. The key object...
