Tumbling Interest Rates in #Europe Leaves Some Banks Owing #Money on Loans to Borrowers



source: http://www.wsj.com/articles/as-interest-benchmarks-go-negative-banks-may-have-to-pay-borrowers-1428939338
At least one Spanish bank, Bankinter SA, the country’s seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.

The problem is just one of many challenges caused by interest rates falling below zero, known as a negative interest rate. All over Europe, banks are being compelled to rebuild computer programs, update legal documents and redo spreadsheets to account for negative rates.
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“I’m going to frame my bank statement, which shows that Bankinter is paying me interest on my mortgage,” said a #customer who lives in #Madrid. “That’s financial #history.”
#Spain #news #financial #banksters #system #EU

WSJ: Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers (Patricia Kowsmann)

Tumbling interest rates in Europe have put some banks in an inconceivable position: owing money on loans to borrowers. At least one Spanish bank, Bankinter SA, the country's seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.
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