The interest rate paid by the European Central Bank (ECB) on excess reserves declined below...

60.1K

Verified Solution

Question

Accounting

The interest rate paid by the European Central Bank (ECB) on excess reserves declined below zero in 2014 (and remained there as of 2019). What was the rationale behind this move to a negative deposit rate, and why would banks be willing to pay to keep deposits with the ECB?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students