The decision of ECB for deeper negative interest rates on excess reserves will put pressure on the revenues of banks in the eurozone and in Bulgaria as well. The effect felt by Bulgarian banks will be even stronger for several reasons.
ECB will give up on negative interest rates on excess reserves long before that could turn into a serious burden on banks
With its decision of today, ECB has made yet another move towards lowering interest rates on commercial banks’ excess reserves. What does that mean regarding interest rates at which banks grant loans and attract deposits from households and companies in the eurozone, and how far can ECB go along the way of deeper negative rates?
From the series: “Finance for Non-Financiers” in the UniCredit Bulbank blog: Free courses offered by the world’s top universities are drawing to a close. Check out five not to miss
UniCredit Bulbank is pleased to share its own selection of still free courses on finance and personal budget management taught by distinguished and globally recognized scientists and professors.
From the series “Finances for non-financiers: practical ideas for smart money management”: Five tips on how money can improve your love life
According to a survey of Money Magazine, couples fight more over money than over sex.
The low base interest rate is a way for central banks to tell the real sector: consume, invest, take loans, spend more. But as the real sector is cautious and acts as “once bitten, twice shy”, in the post-crisis years it is no longer so enthusiastic.
The bank deposits statistics, according to which the savings have increased, is a typical case that can be viewed as "the bottle is half empty or half full".
From the series “Finances for non-financiers: practical ideas for smart money management”: A tale about two managers
You surely know the fable about the Ant and the Cricket. We hope that it did not prevent any talented tomorrow’s musician from making a career in that field.
Banking innovations here and around the world - from the blog: Would you like to experience the benefits of "nudge” banking?
A new way of banking – “nudge” banking - promises to significantly facilitate customers in achieving their long-term financial goals with the help of a few gentle ‘nudges’.
From the “Finance for non-experts: practical ideas for smart money management” series: An unexpectedly easy but important lesson for the personal budget and why is it the first step to richness?
Each of us has a personal monthly budget and consciously or not, more or less effectively, manages it. Unlike governments which can run deficits (deficit is when you spend more than what you earn), we ordinary people, cannot afford that. That is why it is good to have at our disposal a couple of practical ideas on how to manage our cash better.
Highlights from the visit of Levon Hampartzoumian to the national TV show “The day starts with Georgi Lyubenov”: There is a dynamic turnover of money in Bulgaria
The loans to deposits ratio is around 90%. This means that 90% of deposits have been given as loans to citizens and companies.