Credit Suisse Group AG informed financial institutional clients it would start imposing negative interest rates on cash balances held in Swiss francs, an official said.
Marc Dosch, a spokesman for the Zurich-based bank, declined to name the other currencies affected by negative rates. Credit Suisse said in the notice, distributed to bank clients via the Swift system today, that it will communicate the currencies involved, plus the thresholds and rates on an individual basis to those customers during the next five business days.
“Due to the current market situation and after closely monitoring the situation over the course of this year, we have decided to start applying negative credit rates on cash clearing accounts above a certain threshold” as of December 10, according to a notice confirmed by Credit Suisse. “We invite our customers to keep cash balances as low as possible to avoid negative credit charges.”
