AIB told customers on Monday it is changing the terms and conditions of deposit accounts for “micro-businesses” to allow it impose negative rates on such customers in the future. Customers will be given 60 days’ notice of any rate changes, under Central Bank of Ireland rules. This is because the European Central Bank (ECB) has imposed such charges for the past six years on surplus cash banks deposit with it. A spokesman for AIB said 99 per cent of the group’s customers have been shielded “during a sustained period of European negative rates”. Still, excess deposits have thrown up their own problems for banks as they struggle with negative central bank rates and muted demand for new lending.

Source: The Irish Times October 12, 2020 11:03 UTC