Negative rates held for too long could lead to a bank run
Panellists say negative rates could have detrimental effects on banking sector
The longer the European Central Bank's (ECB) interest rates are held negative, the more likely is the possibility of a bank run in the eurozone, according to a panellist at the ninth FX Invest Europe conference in Amsterdam.
Speakers expressed strong views on the potential detrimental effects of negative rates on the financial sector, particularly those affected by the ECB's quantitative easing programme. Panellists put forward their own views, not that of their institutions.
"The credibility of
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