The Swiss banking world seems to be split into two camps following last week's SNB interest rate decision: Those that adjust negative interest rates and those that abolish them altogether.
Valiant Bank will stop charging negative interest to its private and corporate clients as of July 1, making it the first retail bank in Switzerland to take this step, according to a statement (in German) on Wednesday.
Valiant is following the path previously taken by Glarner Kantonalbank (GLKB) and WIR Bank. The camp of banks that have lowered negative interest rates from deposits of 100,000 francs from 0.75 to 0.25 percent includes Credit Suisse and UBS, several other cantonal banks, Postfinance and Raiffeisen.
Negative Rates are so Last Week
«Negative interest rates for private and corporate customers will be a thing of the past in the foreseeable future. That is why we have decided to lift them accordingly for these customers,» says Valiant CEO Ewald Burgener. Should the SNB take further interest rate steps and raise the key interest rate substantially into positive territory, the situation regarding interest rates on savings accounts will also be reviewed, he adds.
In commenting on the course of business for the current year, Valiant anticipates a stable business development and a net profit that is slightly above that of the previous year, according to the statement.
