RE: What sectors are those?
Banks will definitely suffer.
Negative interest rates can seriously affect the profitability of commercial banks, raising the risk of bank failures and financial crisis.
Banks find it difficult to cut interest rates on customer deposits below zero, because customers have the alternative of moving their funds into physical cash, which does not bear interest although it can incur storage costs.
But because larger businesses can borrow from capital markets instead of banks, banks need to cut interest rates on larger loans or face potentially crippling loss of business.
“Banks find it difficult to cut interest rates on customer deposits below zero, because customers have the alternative of moving their funds into physical cash, which does not bear interest although it can incur storage costs.”
Can’t banks borrow from the federal reserve at next to nothing? So what if I don’t loan them $1,500 per year?
If not arguing the point, just hoping someone will explain it to me in a way I understand.