Credit Suisse is among banks to criticize central banks for using negative interest rates to kickstart economic growth. Chairman Urs Rohner on whether he plans to charge the Swiss bank's private clients for the privilege of holding Swiss francs.
Central banks from Europe to Japan are using negative interest rates as a monetary policy tool to entice companies to borrow funds to finance growth plans.
The tool has been heavily criticized by some bankers in Europe such as Deutsche Bank boss John Cryan, who argue that the long-term effects are too damaging to justify short-term growth.
No «Trigger» Level
Credit Suisse chairman Urs Rohner told a banking conference in Frankfurt that Credit Suisse has no plans to pass on to private clients a 75-basis-point charge currently being levied by Switzerland's central bank on francs held by banks above a certain threshold.
«If this is lowered again, then we might have to reevaluate the situation, but there isn't a level where we know we will pass on negative rates to private clients,» Rohner told the annual conference hosted by German newspaper «Handelsblatt».
Damaging Consequences
He also questioned whether Switzerland, which has used negative interest rates in an attempt to weaken the record-high Swiss franc, would push the charges further into negative territory.
«I personally don't believe that negative interest rates will be lowered further, I believe there is a broad recognition in Switzerland and a debate which has begun that the damaging consequences of a long-term negative interest rate policy are too great to afford», Rohner said.
The Swiss National Bank has made it clear that it has little choice but to retain negative interest rates, which the central bank introduced to prevent the franc from further strengthening, as opposed to spurring growth.
